Daniel Matuszewski, former head of Circle Trade, an over-the-counter (OTC) trading desk of cryptocurrency firm Circle, has jointly set up a new proprietary trading firm called CMS Holdings.
Matuszewski has partnered with Bobby Cho, former head of trading at brokerage firm DRW’s Cumberland crypto unit, and Julien Collard-Seguin, a former technology executive at Circle, for the new venture, CoinDesk reported Tuesday.
Matuszewski left Circle Trade in August, while Cho left Cumberland in May, as The Block reported at the times. Their new firm, CMS Holdings, is reportedly looking to pool more than $10 million for business.
A proprietary trading firm invests for direct market gains rather than earning commission by trading on behalf of clients. Cayman Islands-registered CMS Holdings, therefore, doesn’t manage money from outside investors.
“We deploy strategies much like a hedge fund in the market, except that we’re not structured as such,” Cho was quoted as saying in the report.
The firm’s plan is to put 30% of the money into highly liquid cryptocurrencies like bitcoin (BTC) and ether (ETH), 40-50% into less-frequently traded tokens, and the rest into long-term equity investments in the crypto industry, Cho added.