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According to Theblockcrypto.com, Wu Jihan, former CEO of China's mining giant Bitmain, will launch a new startup, Matrix, by the end of July. Matrix, a hosting and trading company, is said to have initially hatched in Bitmain, which will subsequently become a major customer. It is reported that using Bitcoin as a major partner allows Matrix to become "the world's largest OTC (over-the-counter) service desk overnight. Details about the latest company of former Bitmain CEO Wu Jihan are not particularly clear.

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But four sources close to the Chinese business giant said that his new cryptographic services business Matrix has been on the line for about a month.

It is said that Matrix talks with potential customers around the world (except for US customers), and its biggest customer will be Bitmain itself. Assuming that Matrix will provide hosting and loan services to Bitmain, Bitcoin as a miner generates a large amount of cryptographic assets while attracting liquidity for its over-the-counter (OTC) products.

A source who works closely with Asian investors said:

That being said, they will be the largest OTC service desk and asset managers overnight, and with this liquidity, [low] prices will follow," they said, noting that Matrix should have a competitive advantage in the region because The Asian market is “more sensitive to price.

This news may be surprising, because Matrix was previously thought to have originated from the differences between Wu Jihan and the Bitmain co-founder Micree Zhan. But now it seems that the loss of Beijing-based Bitmain's employees and resources may be deliberate and part of a broader strategic plan, with Bitcom's investment director Ge Yuejun working closely with Matrix.

“The relationship between the two is very good,” a source close to the main participants pointed out.

They also explained that Bitcoin began to establish a trading and regulatory department internally and then decided to have a business opportunity in February to turn it into a separate legal entity.

Bitmain did not respond to a request for comment.

According to two sources, it is unclear what role Wu will play in Matrix, although he is said to be currently the "Chairman." A Chinese media said that Wu will eventually be responsible for the CEO of the project. Wu is also a director of Bitcoin and continues to hold a 20.5% stake in the company, which lost $500 million in the third quarter of 2018.

Wu and his co-founders are the richest people in the cryptocurrency, all billionaires. However, one source suggested that Matrix may be part of the founder's exit strategy because they are under political pressure to liquidate their stake in Bitco.

As for the relationship between Matrix and the Chinese government, the Chinese government has strictly prohibited cryptocurrency transactions. It remains to be seen whether the two will contact. Matrix may have an offshore holding company, but some people suspect that it may eventually be granted a monopoly on operations in China, which is part of the government's desire to oversee the underground market there.

However, another source familiar with the local government suspects that any official "thumbs up" will be more subtle.

“It's more like 'if we can't beat them, how do we guide them' attitudes,” they pointed out, adding that the government still has a long way to go.

However, regardless of whether Matrix can operate in China, the region will become an important new player, competing with internationally established companies such as Coinbase and BitMEX.

“This will make Asia a new focus for encrypted OTC,” one source concluded.

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