U.K-Based Trading Platform LMAX to Launch a Crypto Exchange for Institutional Investors
As the institutional interest within the cryptocurrency space continues to grow further, LMAX - a U.K-based foreign exchange trading platform wants to tap into this opportunity. LMAX Exchange group has launched the first ‘institutional cryptocurrency exchange’ called LMAX Digital tailored for hedge funds, banks, and big institutional players.
LMAX Digital will allow the institutional players to trade in five different digital currencies including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Bitcoin Cash (BCH). The company has, however, ensured that the new crypto-trading platform is governed by the same rules and principles applied at the LMAX Exchange’s FCA regulated MTF (Multilateral Trading Facility). This means that the LMAX Digital will comply with all the necessary security standards, KYC and anti-money laundering procedures.
Upon the launch of this new exchange, LMAX Exchange’s CEO, David Mercer, said: “We are furthering the legitimization of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity.”
He further that “The rise of institutional trading of crypto currencies will be a game-changer for the industry. We believe our new exchange will support the transformation of the crypto market from the fringes to the mainstream. Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major cryptocurrencies into wider circulation, helping them to become accepted into conventional funds which in turn will help to support a normalization of value.”
Currently, the new exchange will have its operations confined to LMAX’s London-based data center. In the coming months, the company aims to establish the LMAX Digital Infrastructure in the world’s two big crypto-dominated cities of New York and Tokyo.
In addition to being a dedicated platform for crypto trading, LMAX Digital many other benefits to traders on its platform. For e.g. the firm offers a full custodian solution, a public rulebook for all members, firm institutional liquidity, central limit order book (CLOB), and safe and secure multi-signature wallets.
As a part of the announcement, Mercer also explained that “Over $10 trillion of FIAT has been traded on our exchanges to date and we have institutional clients in over 100 countries. We’ve applied everything we’ve learned in the institutional FX market to LMAX Digital, to create a fundamentally improved, secure digital exchange based on our proven trading technology, market-leading liquidity and transparent and precise execution.”
A lot of established players and exchange operators are developing infrastructure for institutional trading in the crypto space. Recently, Coinbase announced the launch of four-different institutional-products as a part of its expansion plans.