TradeZero, an online brokerage known for commission-free stock and ETF trading in U.S. markets, has announced a new Bitcoin dark pool service in partnership with Jered Kenna, a serial Bitcoin entrepreneur and former founder of Tradehill. The service allows clients—particularly large holders often called 'whales'—to trade Bitcoin in a private, off-exchange environment without paying commissions.
Background: From Tradehill to TradeZero
Jered Kenna pioneered dark pool cryptocurrency trading back in 2011 when he launched Tradehill, one of the earliest Bitcoin exchanges. Now he brings that expertise to TradeZero. Daniel Pipitone, Director of TradeZero, said the company aims to “provide the non-US investor with the same access, tools and discounted commission structure that many US traders enjoy today.” According to Reuters, off-exchange trading already accounts for about 40% of all U.S. stock trades, highlighting the growing demand for private block trading.
Key Features of the Dark Pool
TradeZero’s Bitcoin dark pool offers several compelling features: zero commission fees, multisignature security technology, real-time price indexes, and 24/7 customer support via email and web chat. Clients can deposit both fiat currency and cryptocurrencies to fund their accounts. The firm claims to provide “the highest level of enterprise-grade security to protect their digital assets.” Kenna explained the reasoning behind the service: “As larger mainstream investors wish to diversify from the stock market during this time of heightened global uncertainty and high P/E ratios, TradeZero will allow for making of sizeable trades without raising market price or alerting others to their positions. I’ve been bullish on Bitcoin since it was two cents and this platform is another great enabler for institutional and individual investors alike to trade Bitcoin without market depth risk.”
Industry Context and Competition
The Bitcoin market currently suffers from far less liquidity than ETFs or stocks, and volatility has historically kept mainstream investors at bay. Dark pools offer a solution by matching large orders off-exchange, minimizing price impact. Other platforms such as Kraken and Cumberland Mining already provide OTC trading services. However, TradeZero’s combination of stock, ETF, and cryptocurrency trading in one integrated platform could attract a broader investor base. The minimum deposit to join the dark pool is $10,000 (or equivalent in crypto or other fiat currencies). As institutional interest in digital assets continues to grow, TradeZero’s move may signal a new wave of integration between traditional brokerages and the cryptocurrency world.