The London Stock Exchange has signed its first technology licensing deal with an emerging crypto exchange, providing its Millennium matching engine to Hong Kong's Atom Asset Exchange.
Set to launch in H1 2009, AAX will offer retail and institutional users the opportunity to trade spot and futures markets for cryptocurrencies, and in the future, a range of tokenised assets including, securities tokens, asset backed tokens and stable coins.
The adoption of LSE's Millennium Exchange technology is intended to deliver high performance, reliable and trusted services to investors who demand greater reassurance as digital asset markets globally face fears over security, market manipulation, and unreliable peak-period performance.
The LSE joins other traditional exchange-based technology groups, such as Nasdaq and Cinnober, in the provision of services to an emerging crop of crypto exchanges who are keen to embed institutional performance and best practice into the digital asset marketplace.
Peter Lin, CEO of Atom Group, says: “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.”
The announcement follows the recent Securities and Futures Commission guidelines for cryptocurrency trading in Hong Kong. “With institutions such as Fidelity Investments entering the market and others also gearing up for entry, we predict the digital asset class is primed for entry by institutional and mainstream investors in 2019,” Lin adds.