New LGO Markets Cryptocurrency Exchange Launches For Institutional Investors And Self Custody
LGO Markets Launches
Institutional trading has been gaining even more ground in the crypto world and a new platform has been launched to further explore the ways by which investors can invest.
The platform in question is called LGO Markets and launched on February 4, 2019. The Platform is New Jersey-based and as of now, allows investors to fund and trade through their accounts, though there are plans to introduce spot trading in the future.
So far, the management of LGO markets says that they have rendered services to 10 clients, most of whom are over-the-counter trading desks, hedge fund managers and other businesses. There are another 56 businesses that are in the process of onboarding into the Platform.
While LGO Markets has a lot of promise, they will go up against a good number of already-launched competitors such as Fidelity Investments and New York Stock Exchange parent Intercontinental Exchange.
However, Hugo Renaudin, the CEO of LGO, says that there are many possible clients in the market and that the competition doesn't scare them.
“There are roughly 400 institutional clients that are currently trading in the cryptocurrency market,” Renaudin said. “We estimated this by talking to the crypto-friendly banks. Among these 400, it’s mostly hedge funds, proprietary trading firms, OTC brokers, a few family offices, asset managers and purely crypto players like lending providers that consider trading bitcoin as a part of their business.”
How It Works
Investors who wish to make use of LGO’s platform will first need to set up a multi-signature wallet. This wallet makes use of three private keys to operate. The first key is held by the client, the second is held by LGO markets and the third is held by a Swiss company, Altcoinomy.
They will also need to have a bank account with Signature Bank, which acts as the firm’s official bank. They will then need to clear a transaction with their private key and then have LGO pass the transaction to Altcoinomy, who act as the clearing agents. After they clear the translation with their keys, it can be completed.
The management of LGO has stated that this is a form of client protection and ensures that client access to funds isn’t dependent on the exchange.
“Even if, say, we get hacked or I die like the guy from QuadrigaCX, or the office gets burnt down, the clients still can retrieve their funds, because with their own keys and the keys of the clearing firm they can move their funds and go back to their normal life,” the CEO said.