Hong Kong-based AAX to use London Stock Exchange’s technology for cryptocurrency trading
In an interesting development that might bring cheer on the faces of crypto enthusiasts, London Stock Exchange (LSE) announced on Tuesday that Hong Kong-based AAX would use its technology for cryptocurrency trading, allowing the British exchange operator to enter an industry which is evolving and is still in its nascent stage, according to a report by Reuters.
As per the report, the Hong Kong-based AAX exchange which is backed by the ATOM Group will use LSE’s Millennium Exchange matching system which is already in use on traditional stock exchanges in places such as Hong Kong and Singapore. Atom Group is a fintech company which is focussed completely on the innovative technology called blockchain and the world of cryptos.
The deal which is like a shot in the arm for the cryptocurrency industry and might provide the perfect springboard for wider adoption of cryptocurrencies comes at a time when many governments, including the U.S., are grappling to come to terms with the growing stature of cryptos. The situation in Asia is no better where the picture is still hazy and authorities have warned investors against investing in cryptos a number of times. China has come down heavily on cryptos and same is the case with many other nations.
Speaking about the latest development, Peter Lin, Chief Executive at Atom said, “Trust is at the heart of ATOM’s philosophy and we are delighted to be working with LSEG Technology to deliver a core part of our new digital asset exchange. AAX will leverage LSEG’s Technology to deliver a world-class exchange that ensures safe, trusted and secure digital asset trading for all. The AAX exchange will allow investors to trade all major digital assets with greater levels of fairness, transparency, and performance.”
The main factor that goes against the cryptocurrency industry is the fact that the platforms where the crypto trading takes place is not fully secure like the traditional financial markets and thus are vulnerable to market manipulations.
Another aspect that goes against cryptocurrency trading in Asia is the fact that customers are not insured against thefts and hacks and this makes trading a very tricky affair for the normal customers and it is the main stumbling block which is preventing large fund managers form investing in this nascent market. But with London Stock Exchange entering the cryptocurrency arena, it might provide the much-needed credibility that the cryptocurrency industry still lacks.
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