LMAX, a London-based foreign exchange trading operator, announced Monday, May 21st that it would launch a cryptocurrency trading platform that would target institutional investors including banks and hedge funds.
The popular FOREX operator would launch LMAX Digital to become the first “first physical cryptocurrency exchange dedicated to serving only institutional clients,” according to a press release on its website.
LMAX Exchange Group brings crypto currencies to the mainstream with institutional-only exchange, LMAX Digital – visit https://t.co/BSoEoQaz5B @mercerdavid @LMAX press release https://t.co/cTJNq82z2a pic.twitter.com/twt0J8xA8P
— LMAX Exchange (@LMAX) May 21, 2018
David Mercer, CEO of LMAX Exchange explained that the move would further bring credibility to the cryptocurrency market. He 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”
LMAX Digital and an Institutional interest in Cryptocurrency
Since this year, institutional investors have shown interest in trading cryptocurrencies as seen in the introduction of several futures contract.
According to its press statement, the company created LMAX Digital at the request of existing institutional clients, who wanted a credible, efficient and trusted platform. The investors also wanted a platform to trade digital currencies with like-minded institutions.
Goldman Sachs CEO made similar remarks while announcing her company’s intention to enter the cryptocurrency market. “It resonates with us when a client says, ‘I want to hold bitcoin or bitcoin futures because I think it is an alternate store of value,’” she said.
Coinbase cryptocurrency exchange recently released some tools targeted at institutional investors. The tools which include cryptocurrency asset custody, Coinbase Markets, and Coinbase Prime were developed to attract institutional investors. In line with this trend, firms exhibited several other products aimed at institutional investors at the just concluded Consensus conference.
Earlier this month, UK-based Crypto Facilities launched the first regulated Ethereum futures contracts.
LMAX aims to become the leading exchange in the capital market
Borg acknowledged the increase in institutional trading of cryptocurrencies and conveyed the company’s ambition to become “the leading exchange in capital markets [globally].” To achieve this, the company will expand LMAX Digital exchange to New York and Tokyo in addition to its London Data Centre.
LMAX Digital would offer “only the most liquid and established cryptocurrencies” including Bitcoin, Ethereum, Litecoin, Ripple and Bitcoin Cash.