Cryptocurrency Brokerage Service Announced By Canada’s TMX Groupbr>
Canada-based stock exchange operator TMX Group has announced that it is launching a cryptocurrency brokerage service through the launch of its Shorcan Digital Currency Network (Shorcan DCN) subsidiary.
TMX Group has partnered with Toronto-based Paycase Financial on the initiative. Shorcan DCN, together with Paycase, will create proprietary-based cryptocurrency benchmarks based on consolidated data from the world’s leading crypto exchanges, as well as over the counter (OTC) brokered volume. The new cryptocurrency brokerage service would focus on bitcoin and ether at launch, which is slated for the second quarter of 2018.
Paycase CEO Joseph Weinberg called the brokerage “The first public crypto brokerage desk by an exchange,” saying the new partnership “represents the true institutionalization of cryptocurrencies as an asset class.”
“Paycase’s partnership with the TMX solved a major problem in the blockchain ecosystem,” said Weinberg. “With this partnership, we have built the first major bridge between the crypto world and the traditional financial markets. This is just a taste of more things to come from the collaborative and tight-knit Canadian community as we build out more products for the world.”
John Lee, Managing Director, Enterprise Innovation & Product Development, TMX Group, said Shorcan DCN represents a significant step forward in the execution of TMX Group’s digital strategy.
“As new technologies continue to reshape the global financial industry, we continue to explore new ways to evolve our business to address client needs in both traditional and non-traditional markets,” said Lee.
Lasy Year, TMX Group partnered with the Bank of Canada and Payments Canada to experiment with using blockchain technology to automate the securities settlement process. Lee said the prototype for a digital ledger-based clearing system is in the process of being built, and testing could begin as early as the second quarter of this year.