Cryptocurrency exchanges have made great strides in creating trading platforms that will be attractive to institutional investors. The major barriers have been the knowledge-gap between traditional fiat systems and digital assets, along with the inconsistent and constantly evolving government regulations involved with these types of businesses depending on what country or even city within a given country the business is located.
LGO Markets is introducing a more familiar process for conducting cryptocurrency trading for institutional investors. They have secured 10 institutional clients including over-the-counter (OTC) trading desks, hedge funds, crypto businesses and market makers. They have another 56 clients in the onboarding process.
“There are roughly 400 institutional clients that are currently trading in the cryptocurrency market,” Renaudin told CoinDesk. “We estimated this by talking to the crypto-friendly banks. Among these 400, it’s mostly hedge funds, proprietary trading firms, OTC brokers, a few family offices, asset managers and purely crypto players like lending providers that consider trading bitcoin as a part of their business.” - CEO Hugo Renaudin
Growing With The FinTech Industry
Just over a year ago, a company called Legolas raised 3,600 BTC through an ICO that was registered in France. The LGO tokens were equivalent to $32.5 million at the time, and purchased by over 9,000 retail investors registered in more than 50 countries. The exchange platform has since been renamed, to LGO Markets, but the token will still become the native currency on the platform. Official launch was this week, but the platform will not be fully functional to conduct trades until March 11th.
The LGO Markets platform concept rose from a team youthful entrepreneurs and seasoned finance professionals. CEO Hugo Renaudin interned at BlackRock and Societe Generale, worked for blockchain the startup BitSpread and then founded LGO. The team includes former Bank of America director of prime brokerage sales, Camilla Churcher as head of sales. The platform itself was designed to pair well with their strong cryptocurrency connections and traditional banking network
The platform takes a step back in terms of efficient in a sense. Rather than working directly with clients, LGO markets uses a middle-man for custody and trade confirmations. In this way, their trades make the same steps to completion that traditional investments would make. However, it is being done through newer, more efficient blockchain systems. Clients will need to set up a multi-signature wallet - one key is controlled by the client, a second held by LGO Markets, a third by a their clearing house, Altcoinomy. For fiat deposits, clients will register with Signature Bank, which uses Signet, a blockchain-based settlement system for Bitcoin transactions.
By: BGN Editorial Staff