TD Ameritrade Invests In New Digital Asset Exchange ErisX

TD Ameritrade has announced on October 3, 2018, that it has invested in regulated derivatives exchanged ErisX, which was recently launched to trade cryptocurrencies and futures.

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TD Ameritrade has announced on October 3, 2018, that it has invested in regulated derivatives exchanged ErisX, which was recently launched to trade cryptocurrencies and futures.

ErisX is said to compete directly with the highly anticipated Bakkt exchange launched by NYSE parent ICE.

TD Ameritrade could venture further into cryptocurrency business

US-based brokerage firm TD Ameritrade revealed that with this latest development the company could offer more cryptocurrency related products in the future.

The firm stated that their clients are seeking to access and trade digital currency products that are legitimate, regulated, and purchased on a transparent exchange, in the same way as they do with traditional capital markets.

Their investment in ErisX means the cryptocurrency exchange who would now be tasked with making digital currency products more accessible to retail clients.

JB Mackenzie, managing director of futures and foreign exchange for TD Ameritrade, stated that the company has received several requests from their clients seeking access to trade digital currency products.

He added that they wanted a platform that would be fully regulated, provides investors with that “capital markets” feeling, which is why they chose ErisX.

The cryptocurrency exchange is regulated by the Commodity Futures Trading Commission, which is very important for investors, says Mackenzie. There are some regulatory issues with the exchange that are still pending but ErisX is seen as a very trusted exchange at the moment.

Mackenzie added that the fact that the exchange offers access to both futures and physical Bitcoin products was a key feature in seeing the deal between the two companies go through.

ErisX differs from other exchanges like Coinbase, which offers only spot trading of Bitcoin, ErisX offers trading, deposits, and withdrawals for Bitcoin, Bitcoin Cash, Ethereum, and Litecoin.

This latest development comes as the general digital asset market continues to garner support all over the globe.

Despite the launch of Bitcoin futures trading on both the Cboe Global Markets Inc. and CME Group Inc. earlier this year, the volumes have not been encouraging.

TD Ameritrade investment could lead to the broader market adoption

Don Wilson, one of the cryptocurrency exchange’s investors via holding firm DRW Holdings and TD Ameritrade, believes that this latest investment would go a long way in solving some of the issues surrounding broader market adoption.

He stated that ErisX will eliminate many of the impediments to institutional adoption and usher in a new wave of market participants. This will further lead to the development of the digital asset space and more transparency in emerging markets.

TD Ameritrade currently controls over $1.2 billion in assets and manages 11 million retail accounts. It was the first financial service firm to allow its clients to access Bitcoin futures contracts, a service the company launched last year.

TD Ameritrade is not the only company to invest in ErisX; CBOE and Digital Currency Group also backing the new cryptocurrency exchange.

TD Ameritrade Invests In New Digital Asset Exchange ErisX

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