The London Stock Exchange enters the world of cryptocurrencies. Technology exchange with the AAX exchange.
La London Stock Exchange (London Stock Exchange) is entering the world of cryptocurrency, deciding to sell part of its trading technology to AAX, a digital asset exchange based in Hong Kong.
The deal will be the first sale of LSE systems to a cryptocurrency exchange, and comes just at the moment when the security concerns of these platforms are becoming increasingly pressing, ending up damaging the sector.
Crypto currencies encrypted like Bitcoin and other digital assets have indeed faced major obstacles in gaining acceptance by traditional investors, often due to regulatory concerns and security issues affecting the technology used in the sector.
Over the past three years more than 1.000 cryptocurrency exchanges
However, while the core technology of the blockchain behind many digital assets is considered unassailable, in recent years the "cyber robberies" have targeted other system weaknesses, with hundreds of millions of dollars in losses.
Investments in crypto-related assets, including venture capital, reached $ 24,4 billion in 2018, more than doubling from $ 10,1 billion the previous year, according to Autonomous Research.
"If you look at the traditional market, there is a limited number of traditional exchanges," he said Lorne Chambers, global sales and marketing manager of LSEG Technology. "But there are a number of cryptocurrency exchanges that continue to emerge."
Note also how several other cryptocurrency exchanges have purchased technology from the "traditional" side of the financial market. This is the case of Gemini, who agreed to acquire market surveillance technology from Nasdaq last year, while AAX, supported by the Hong Kong-based Atom Group, has now decided to purchase the LSE Millennium Exchange system, which is already used to combine operations on traditional exchanges in places like Hong Kong and Singapore.
Over the past three years, more than 1.000 cryptocurrency exchanges have appeared around the world, most of which have designed their systems and technologies.
