TMX Group, the operator of the Toronto Stock Exchange, has announced it’s launching a cryptocurrency brokerage platform.
Canada is about to set a big precedent for the world. The country’s largest stock exchange will soon become the first in the world to begin offering cryptocurrency brokerage services to its clients.
TMX Group, the holding company of
Toronto Stock Exchange (TSE), is launching a trading platform for cryptocurrencies, starting with
Bitcoin and
Ethereum – the Canadian-developed cryptocurrency. This marks a major breakthrough for cryptocurrencies.
In short, it means Bitcoin has just been institutionalized as an asset class in Canada. It’s the first time ever that Bitcoin may trade on the same platform as other traditional assets.
TMX, which also operates the
TSX Venture Exchange,
Montréal Exchange,
Canadian Derivatives Clearing Corporation, and a number of other securities trading platforms in Canada, also owns a digital currency-focused subsidiary,
Shorcan Digital Currency Group (DCN). The TSE owner also announced the brokerage service would be made available through partnership with
Paycase Financial Corp. The Toronto-based fintech startup specializes in decentralized financial services and operates a mobile-based remittance platform.
“As the first ever public crypto brokerage desk by an exchange, this deal represents the true institutionalization of cryptocurrencies as an asset class,” said Paycase CEO Joseph Weinberg. He went on to describe the project as building “the first major bridge between the crypto world and the traditional financial markets”.
This venture helps Bitcoin on two fronts.
First, it quells skepticism surrounding Bitcoin regulations and establishes it as a legitimate investment class in the country.
Second, it paves the way for new buyers to get a taste of this new investment idea. Now that a publicly recognized investments entity is offering Bitcoin, people who’ve so far steered clear of cryptos may be ready to give it a second look.
In February, the
Canadian Securities Exchange (CSE) announced plans to launch a blockchain platform for clearing sales of tokens qualified as securities. Cryptocurrencies were also referred to as securities in its listings. The CSE offered companies the opportunity to issue traditional shares and debt securities as “security token offerings”, which could be sold to investors.