Institutional digital asset exchange LMAX is set for a record month of volumes as it approaches the one-year anniversary of its launch.
In a month where the crypto bull run has returned and Bitcoin has reached a 2019 high of over $8,000, LMAX said it has hit new highs of over $400m in daily volumes.
The group said May is set to surpass April’s monthly volumes of $2.2 billion as the best month for the exchange.
Its overall activity has now topped four million completed trades.
“Cryptocurrencies are becoming more and more accepted and LMAX Digital has seen a huge increase in demand for digital currencies from institutional investors,” said Jenna Wright, head of LMAX Digital. “They trust our platform as a safe and credible way to trade this type of currency.”
LMAX launched in May 2018 at the request of its existing institutional client base, it claimed at the time.
The platform operates under similar rules and governance of the LMAX Exchange multilateral facility (MTF) and is based on the venue’s existing technology stack.
In April 2019, the exchange was granted a Distributed Ledger Technology (DLT) licence by the Gibraltar Financial Services Commission, meaning it is authorised to store and transmit value using distributed ledger technology.
Despite the volumes spike, the crypto market as a whole is still struggling to attract the market’s largest institutional investors.
While crypto hedge funds, family offices and endowments has been participating, a number of barriers still remain before traditional asset managers and hedge funds fully commit.
The barriers to entry include security concerns, a lack of traditional custody offerings, regulation, familiar market infrastructure and price volatility.
LMAX’s CEO, David Mercer, believes the exchange is “adding legitimacy to the nascent crypto currency industry and helping establish a more effective market structure for the long term.”
“We have successfully created a unique platform for institutional investors to trade and hold crypto currencies securely, with high quality, deep liquidity from a trusted exchange operator,” he added.