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TD Ameritrade invests in new digital asset exchange ErisX
Brokerage firm TD Ameritrade Holding Corp. has become a strategic investor in the newly announced digital assets exchange ErisX.
The exchange, unheard of before the announcement, is seeking to establish a regulated derivatives exchange and clearing organization that will include digital asset futures and spot contracts on one platform.
“Our retail clients are seeking to access and trade digital currency products in the same way they do with traditional capital markets – through a legitimate, regulated and transparent exchange,” Steve Quirk, executive vice president of Trading & Education at TD Ameritrade said in a statement Wednesday. “That’s precisely why we chose to invest in ErisX – to make digital currency products more accessible to retail clients.”
The website for ErisX makes a number of broad-reaching statements, such as its desire to improve “the digital asset trading experience for institutions and individuals alike” with its “in-depth experience of delivering and operating a fully regulated marketplace.”
ErisX said it was founded in 2010 as Eris Exchange to offer cash-settled swap futures and applied for a license to operate as a Derivatives Clearing Organization with the U.S. Commodity Futures Trading Commission in 2017. Its current plans call for launching spot contracts in the second quarter of 2019 and future contracts in the second half the same year, subject to regulatory approval.
The company also said it plans to offer support for bitcoin, Bitcoin Cash, Ethereum and Litecoin with “trading, deposits and withdrawals on a stable capital markets technology infrastructure.”
Other investors in the company include Digital Currency Group, Cboe, Chicago Trading Co. and DRW Venture Capital. The size of the TD investment was not disclosed.
It’s strange that a new digital asset exchange appears from seemingly nowhere with strong backing from leading firms. Although the company left a number of questions left unanswered, if it obtains regulatory approval, it might be a welcome addition, providing more options to institutional investors wishing to participate in the cryptocurrency market.
Image: ErisX
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