LMAX Exchange, the UK foreign exchange platform has ventured into the cryptocurrency market and is aiming to use its reputation to lure banks and institutional investors looking at the sector.
LMAX, which has offered fiat currency trading since its launch in 2010, plans to further boost the legitimacy of the cryptocurrency asset class as institutional interest continues to surge.
LMAX will provide cryptocurrency custodian services to institutional clients who trade on LMAX exchange, removing the biggest hurdle that has prevented institutional investors from entering in cryptocurrency market.
Large-scale banks and hedge funds have been unwilling to buy new digital assets due to the difficulties in holding and securing them.
The LMAX Digital exchange joins a ever-growing stream of interest in servicing the banks and big funds, with US efforts well ongoing in the form of the Winklevoss twins’ Gemini and, more recently , Goldman Sachs’ Bitcoin futures plans earlier this month.
In the UK, competing trading platform eToro last week announced it would launch its own cryptocurrency exchange in the US, together with a mobile app which could have user base of up to nine million, right off the bat.
Only the established crypto currencies with good liquidity are offered through LMAX Digital: Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash. Trading is available non-stop, 24 hours a day, seven days a week, and ruled by similar rules and principles as LMAX Exchange’s FCA regulated MTF (Multilateral Trading Facility). This makes sure the exchange functions with best-of-breed security, compliance, KYC and anti-money laundering policies and procedures, and traders are treated equally regardless of status, size or activity levels.
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