The London Stock Exchange (LSE) is currently considering a move towards the cryptocurrency space; a step that so far it has avoided. It is selling technology though, not shares.
Reports indicate that the LSE Group has signed a deal with Hong Kong-based global fintech company, ATOM Group (ATOM) in order to enable its AXX Digital asset exchange to be able to use LSE tech. The tech is called the “Millennium Exchange™ matching engine”, which is currently used for trading in the Far East.
Head of LSE’s global sales and marketing, Lorne Chambers, claims that the market is moving slowly in the direction of crypto exchanges and blockchain companies. As such, the need for traditional tech and expertise is becoming more sought after. Etelka Bogardi, a partner at Norton Rose Fulbright in Hong Kong argues:
“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.”
The recently announced deal between the LSEG and AXX has its problems going in though, as the latter will need to overcome investors concerns regarding the kinds of recurrent crypto scams and heists which have largely been responsible for keeping traditional investors away from the space. Investors need to know that companies offering cryptocurrency services are fully compliant with regulations and are protected.
AXX will be hoping that by using tried and tested technology from the traditional stock market, this will give investors the kind of assurance that they are looking for. Peter Lin, CEO of ATOM Group comments that this will be the case, commenting:
“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.”
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: BitcoinNews.com
