Yesterday, a new trading platform for cryptocurrencies that is aimed at institutional investors was launched in London. One of the members of the board of directors of the said platform is a former top executive of the London Stock Exchange (LSE).
The new platform is called Archax. It will aim to operate “in a regulated manner” – in space that is yet to be regulated – in an attempt to attract large investors who have been concerned over investing in digital assets due to liquidity concerns and the high volatility of the largest cryptocurrencies.
Graham Rodford, the founder of the new crypto platform, was a former chief operating officer at a £1bn London hedge fund called Omni Partners. He will remain to serve as a non-executive partner at the company.
The advisory board of the firm includes the former chief strategy officer of the LSE, David Lester. He was one of the key players in the expansion of the business under Xavier Rolet its former chief executive. Lester is set to serve as a non-executive director.
David Buckley will serve as the chairman of the board. He also chairs the board of a business-focused challenger bank called Redwood Bank.
While the most high-profile digital assets were able to gain a foothold among various institutional investors, some technologists forecast that issuing tokens will displace the initial public offerings on equity markets when companies need to raise some funds.
Lester stated: “Tokenisation and blockchains are innovations that have significant potential to disrupt and open up new business opportunities. How this evolves is of real interest to capital providers, business leaders and founders.”