A new trading platform for cryptocurrencies targeted at institutional investors will launch today in London with a former top executive at the London Stock Exchange (LSE) on its board.
Archax will aim to operate “in a regulated manner” – in an as yet unregulated space – in a bid to attract big investors who have been wary of investing in digital assets because of liquidity concerns and the high volatility of the biggest cryptocurrencies.
Founder Graham Rodford is a former chief operating officer at Omni Partners, a £1bn London hedge fund. He will remain a non-executive partner at the firm.
The firm’s advisory board includes David Lester, the former chief strategy officer at the LSE who was a key player in the expansion of the business under former chief executive Xavier Rolet. Lester will serve as a non-executive director.
The board will be chaired by David Buckley, who also chairs the board of Redwood Bank, a business-focused challenger.
While the most high-profile digital assets have gained little foothold among institutional investors, some technologists predict that issuing tokens will supplant initial public offerings on equity markets when firms need to raise funds.
Lester said: “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.”