The LMAX Exchange Group, a financial technology firm and owner of the LMAX Exchange, announced today that it will be launching the first institutional cryptocurrency exchange. The exchange, which is going to be called LMAX Digital, will enable institutional investors to trade in five different cryptocurrencies.
The opening of the new exchange will be music to the ears of an industry that has often struggled to gain a sense of legitimacy. With so many dodgy exchanges and shady initial-coin-offerings, the opening of an institutional only crypto-exchange will provide crypto-enthusiasts with a long-yearned for seal of approval from financial officialdom.
Commenting on the decision to open the new exchange, LMAX Exchange’s CEO, David Mercer, said: “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.”
Five coins to trade
As noted, users of LMAX Digital will initially only be able to trade five different cryptocurrencies. Bitcoin, Bitcoin Cash, Litcoin, Ethereum and Ripple were chosen as they were deemed to be the most established cryptocurrencies and, more importantly, provide the highest level of liquidity.
The new exchange will be launched from, and initially be confined to, LMAX’s London-based data centre. That will likely change in the coming months as the firm has plans to open LMAX Digital infrastructure in Tokyo and New York.
Aside from being, to date, the only cryptocurrency exchange for institutional investors, LMAX Digital will offer a number of other benefits to traders on its platform. For instance, the firm will provide one public rulebook for all members, offer a full custodian solution and provide secure, multi-signature wallets.
The opening of the service will help enable LMAX to continue their current period of growth. As reported by Finance Magnates, last year saw the firm finishing the year with record profits.