ErisX has announced plans to launch a fully regulated exchange which will include both digital asset futures and spot contracts, on a single platform. The new venture has notable support through investments from TD Ameritrade, Virtu Financial, and DRW Venture Capital, among many others.
ErisX aims to bring transparency, stability, and regulatory compliance to the digital asset market.
Despite the SEC’s unclear guidance regarding securities tokens compliance, ErisX has demonstrated initiative through becoming regulated by the Commodity Futures Trading Commission (CTFC).
It will offer both futures and physical bitcoin products. ErisX will also support trading, deposits, and withdrawals for bitcoin, bitcoin cash, Ethereum, and Litecoin.
The Strong Financial Backing of ErisX
Perhaps the biggest buzz behind the new announcement centers around ErisX’s reputable sources of financial support.
In an interview with CNBC, JB Mackenzie— TD Ameritrade’s Managing Director of futures and foreign exchange— recently discussed why they chose to back ErisX.
“We continue to see our retail clients seeking access to trade digital currency products. We wanted to find a platform that would be fully regulated, and something that has that capital markets feel.”
To understand the full consequences here, the volume of TD Ameritrade’s activity should be noted. As of October 2018, they have over $1.2 trillion in assets, and 11 million retail accounts. The veteran brokerage firm executes 780,000 trades per day, on average.
Mackenzie went on to add that despite the decline in the cryptocurrency market capitalization— which dropped 50% in 2018 according to CoinMarketCap— his customers display consistent interest in digital currencies.
“It’s a young product in a fast moving ecosystem, and while bitcoin may not have the same demand as it did in December, there is still demand nonetheless. We listened to our customers — what we continued to hear was that they wanted access to trade digital currency products.”
Former Citi Managing Director Thomas Chippas to Head ErisX
Thomas Chippas— former Citi managing director and head of global quantitative execution— was recently named CEO of ErisX. He discussed how his team’s experience will strengthen the ErisX platform:
“Closing this round of funding enables us to accelerate investments in the platform and our team. Leveraging our heritage and experience with exchange infrastructure, our market participants will benefit from modern trading tools on a fair and transparent platform. ErisX’s enhanced experience will provide the opportunity for new participants to enter the digital asset market and existing participants a superior venue for their execution and clearing needs.”
The round of funding that Chippas mentioned features a long list of prominent enterprises. Beyond TD Ameritrade, Virtu Financial, and DRW Venture Capital, the list includes: Valor Equity Partners, NEX Opportunities, Cboe Global Markets (CBOE), CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital, Third Stone Partners, CMT Digital, Susquehanna International Group, XR Trading, C2 Capital Management, and ED&F Man Capital Markets Inc.
It goes without saying that ErisX has received a large amount of investor interest. Their future is undoubtedly bright, and with some predicting securities tokens to become a $10 trillion industry, it will be interesting to watch ErisX develop into a fully functioning platform.
What do you think about a regulated exchange with so much support from traditional investing enterprises? What does this say about the future of tokenized securities? Let us know what you think in the comments below.
Image courtesy of ErisX and TD Ameritrade.