Oanda readies cryptocurrency trading in Asia after buyout by CVC Capital

Oanda, the online foreign exchange broker which this week accepted a buyout offer from CVC Capital Partners, will consider offering cryptocurrency trading this year through a derivative product in Singapore.

The new product would involve what’s known as a contracts for difference (CFD), a synthetic financial product that allows investors to take leveraged bets on the rise and fall of the underlying asset without the need to take physical delivery.

Oanda, known for its exchange rate data and foreign exchange conversion tool, has been quoting bitcoin prices since 2013. The firm has recently been exploring whether to offer trading of bitcoin and other leading cryptocurrencies through CFDs, amid growing demand, much of it driven by Japanese and South Korean retail investors.

The price of bitcoin hit a record high of US$17,527 in January, and fell to a recent low of US$6,636 in April.

Oanda has no plan to offer cryptocurrency trading in China, where the products are banned.

Still, Oanda says it has been conducting internal tests since the beginning of this year as part of preparations for cryptocurrency trading.