LMAX Exchange has launched what it says is the first physical cryptocurrency exchange dedicated to serving only institutional clients.

LMAX Digital will support bitcoin, ether, litecoin, ripple and bitcoin cash, at the request of existing institutional clients who the firm says desired a credible, efficient and trusted platform on which to trade digital currencies with like-minded institutions.

“We are furthering the legitimisation of the cryptocurrency market by offering institutions a platform on which to acquire, trade and hold cryptocurrencies securely with high quality, deep liquidity,” says David Mercer, CEO of LMAX Exchange.

Trading is available 24 hours a day, seven days a week, and governed by similar rules and principles as LMAX Exchange’s FCA regulated MTF (Multilateral Trading Facility). This ensures the exchange operates with security, compliance, KYC and anti-money laundering policies and procedures, and market participants are treated equally regardless of status, size or activity levels.

As is the case with the firm’s other offerings, it has a public rulebook for all members, firm liquidity on a central limit order book (CLOB), and LMAX Digital also offers hot/warm/cold multi-signature wallets and a full custodian solution.

LMAX says matching latency will be under 350 microseconds and all orders will also be timestamped in microseconds (receipt to execution).

“We are perfectly positioned to address the gap in the market for a robust physical crypto currency exchange operating with institutional liquidity,” says Mercer. “Over $10 trillion of fiat has been traded on our exchanges to date and we have institutional clients in over 100 countries. We’ve applied everything we’ve learned in the institutional FX market to LMAX Digital, to create a fundamentally improved, secure digital exchange based on our proven trading technology, market leading liquidity and transparent and precise execution.

“The rise of institutional trading of crypto currencies will be a game-changer for the industry,” he continues. “We believe our new exchange will support the transformation of the crypto market from the fringes to the mainstream. Digital currencies are, without a doubt, coming of age. Exchanges will play a crucial role in bringing the major crypto currencies into wider circulation, helping them to become accepted into conventional funds, which in turn will help to support a normalisation of value.

“Further to the launch of LMAX Digital in our London-based data centre (LD4) and true to our ambition of becoming the leading exchange in capital markets, we intend to roll out LMAX Digital exchange infrastructure in New York and Tokyo in the near future, to meet demand from our clients globally.”