Leading retail brokerage firm TD Ameritrade (AMTD) has reportedly made a strategic investment in ErisX, a new regulated crypto derivatives exchange that is planning to offer both digital futures and spot trading, starting with Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).
.@TDAmeritrade has made a strategic investment in ErisX, a regulated derivatives exchange and clearing organization that will include digital asset futures and spot contracts on one platform. https://t.co/hIrRWPXQmP
— TD Ameritrade News (@TDAmeritradePR) October 3, 2018
According to the announcement, ErisX is focused on addressing the impediments to institutional adoption through a centralized exchange that provides reliability and security through a strong regulatory framework and liquidity designed for high-value trading.
“Closing this round of funding enables us to accelerate investments in the platform and our team. Leveraging our heritage and experience with exchange infrastructure, our market participants will benefit from modern trading tools on a fair and transparent platform. ErisX’s enhanced experience will provide the opportunity for new participants to enter the digital asset market and existing participants a superior venue for their execution and clearing needs,” said ErisX CEO Thomas Chippas, who was previously the head of global quantitative execution at Citi.
Based on the information provided, it looks like ErisX will be a direct competitor to Bakkt, the upcoming institutional investor-focused crypto exchange venture backed by Intercontinental Exchange. Bakkt recently confirmed that its first investment product will come in the form of physically delivered Bitcoin futures contracts.
As for TD Ameritrade, this isn’t there first foray into the world of digital currencies. Last April, the firm made its mark on Bitcoin’s blockchain by sending a series of transactions to create an advertisement — a concept similar to ASCII artwork. The design was the first advertisement to be placed in the coin’s public ledger.
DRW Venture Capital, Valor Equity Partners, Virtu Financial (VIRT), NEX Opportunities, Cboe Global Markets (CBOE), CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital and Third Stone Partners all participated in ErisX’s investment round.
Photo: Tony Webster / Flickr
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.