For the first time, the London Stock Exchange is considering the cryptocurrency industry, selling some of its trading technologies to crypto asset exchange, AXX.
Crypto Exchange Powered by LSEG Technology
A new deal, in fact, the first deal that LSE is signing for the crypto industry is exciting the market. According to the reports, London Stock Exchange Group (LSEG) has signed a sale deal with Hong-Kong based global fintech company, ATOM Group (ATOM™) that let its AXX Digital asset exchange to adopt LSEG Technology. Consequent to the deal, the digital exchange will obtain Millennium Exchange™ matching engine’. These machines are already employed across Hong Kong and Singapore to match trades on traditional stock exchanges.
Ann Neidenbach, CIO, LSEG Technology notes in an official release
“We are delighted to have been selected by ATOM to provide a best-in-class technology solution to help power its new exchange. It underlines Millennium Exchange’s reputation for performance, scalability, flexibility, and reliability and we look forward to working with the AAX team ahead of the launch in H1 2019,”
Security and Regulatory Compliance – Key Concern
LSE & AXX’s announcement comes in midst of increasing security as a concern. Although the underlying technology behind cryptocurrencies is quite secure, the rising graph of scam and heists cases have kept traditional investors behind the scene. To participate in the escalating crypto market, these investors demand higher security and those platforms that are properly compliant with the regulations. Although there is a number of crypto exchange that has developed their own technology but those from the regulated market certainly enhance the confidence among traditional investors.
This would be the first digital asset exchange technologically powered by London Stock Exchange. This reminds me of Gemini stock exchange which has agreed to leverage smart market surveillance technology from Nasdaq to monitor cryptocurrency market. Peter Lin, CEO of ATOM Group said that;
“The digital asset marketplace faces a critical need for more industry best practice in order to build greater investor confidence. AAX will leverage LSEG Technology’s platform and expertise to deliver a world-class exchange that provides fair, trusted and secure digital asset trading for all,”
Lorne Chambers who is the global head of sales and marketing at the London Stock claims that there is a number of crypto exchanges than traditional stock exchanges. While on hand, AXX employs LSE’s technology, on the other hand, blockchain companies are stepping up to design new technology for traditional investors. In similar regards, Etelka Bogardi, a partner at Norton Rose Fulbright in Hong Kong says;
“I think the trend is now a two-way street between crypto exchanges trying to leverage or purchase expertise from established exchanges in the non-crypto space, and established exchanges partnering with crypto expertise to leverage the underlying blockchain technology for the traditional securities space,”
Further, Peter Lin, the Chief executive at Atom also states;
“One of the things we need moving forward is to bring in more technology from regulated markets to make sure this is safer for investors.”
Do you think AXX with LSEG’s technology attracts traditional investors? Will it be a safe ground for the crypto industry? Let us know.