LMAX Exchange Group (“LMAX Exchange”), which operates a leading Financial Conduct Authority (FCA) regulated trading venue, announced today that it would be launching the first physical cryptocurrency exchange to serve institutional clients.
LMAX said it developed the new “LMAX Digital” venue at the request of clients who wanted access to cryptocurrencies like bitcoin and ether. Clients will be able to trade Bitcoin, Ether, Litecoin, Ripple, and Bitcoin Cash on the exchange, which will operate 24 hours a day and 7 days a week.
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,
Said David Mercer, CEO of LMAX Exchange.
LMAX will offer cryptocurrency custodian services to clients who trade on its exchange, solving one of the major problems that have prevented institutional investors from dabbling in cryptocurrencies.
Banks and hedge funds have been reluctant to buy these new assets given the difficulties in holding and securing them.
LMAX Exchange was launched in 2010 as a multilateral trading venue for foreign exchange and has transacted over $10 trillion of fiat currency, and have institutional clients in over 100 countries since launch.
We are perfectly positioned to address the gap in the market for a robust physical crypto currency exchange operating with institutional liquidity,
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.
LMAX Digital will be run out of London initially but Mercer said that the company’s data center infrastructure will soon be replicated in New York and Tokyo to support clients in those markets.