Archax Stock Brokerage To Target Institutional Crypto Trading Next Yearbr>
Aquis Technologies, the financial and regulatory technologies services arm of Aquis Exchange, has been chosen by Archax, the crypto and token exchange, to supply the upcoming market with trading technology when it launches in the first half of 2019.
Archax will take Aquis’ complete suite of exchange operations services and tools including the Aquis Matching Engine (AME), its Aquis Market Surveillance (AMS), as well as operations systems and assistance in the post trade environment.
Aquis Exchange PLC is listed on the London Stock Exchange’s AIM and is authorized and regulated by the UK Financial Conduct Authority to operate a Multilateral Trading Facility (MTF). The Aquis MTF is currently used by brokers, banks and liquidity providers to trade stocks from 14 European markets.
BLOCK TRIBUNE: How did the Goldman Sachs news affect things?
GRAHAM RODFORD: When the news was released, we were surprised given Goldman Sachs active participation in the space expressed through channels such as Circle. It subsequently has appeared to be fake news, as stated by the CFO of GS at TechCrunch.
BLOCK TRIBUNE: Government regulators have, so far, been rather murky on plans going forward. What does that do to investor confidence among institutions?
GRAHAM RODFORD: Regulation helps to improve standards and therefore confidence in certain industries. Whilst there continues to be a lot of discussion around regulation, there is no doubt that the regulators are moving in the right direction. One of the most pressing challenges is effective co-ordination between governments globally to address the advent of Blockchain driven applications without it descending into a ‘race to the bottom’ typically associated with offshore jurisdictions. Initiatives such as Innovate Finance and the FCA Regulatory Sandbox are key to the measured adoption and understanding of emerging technologies such as blockchain.
BLOCK TRIBUNE: What’s the appetite for altcoins among institutions? Any particular focus?
GRAHAM RODFORD: We believe that whilst there will continue to be demand for ICOs and altcoins amongst certain sections of crypto asset managers, we think that in the long term institutions will focus on security tokens. Archax is being built with this in mind and intends to build an ecosystem that is capable of allowing institutions to trade and hold cryptocurrencies and security tokens inside a credible framework built, from the ground up, with them in mind.
BLOCK TRIBUNE: How do they feel about privacy coins? Stable coins?
GRAHAM RODFORD: We have seen than privacy coins often divide opinions. Not having your transactions viewed by the world when your wallet is identified is clearly attractive – in the same way that existing bank accounts are private from general public view. But providing a system that could be used to mask illegal activity is clearly a negative. As the sector develops, we think we will see use cases for privacy coins, but in their current form it is unlikely that they will be adopted by regulated institutions.