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Toronto Stock Exchange Operator to Launch Cryptocurrency Brokerage Platform

Josiah Wilmoth
Last Updated March 4, 2021 5:05 PM
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A wholly-owned subsidiary of Canada-based stock exchange operator TMX Group has announced that it will launch a cryptocurrency brokerage platform.

TMX — best known as the operator of the Toronto Stock Exchange (TSX) — unveiled the plans  on Thursday, stating that the platform would likely launch by mid-year and would allow clients to buy and sell Bitcoin and Ether, the two most liquid cryptocurrencies.

The venture will see TMX subsidiary Shorcan Digital Currency Network (DCN) partner with Paycase Financial, a decentralized financial services provider based out of Toronto. BMO Financial Group has agreed to provide Shorcan DCN with banking services.

Paycase CEO Joseph Weinberg said that the cryptocurrency brokerage’s launch represents the first “true institutionalization of cryptocurrencies as an asset class,” adding that it will help establish a bridge between mainstream finance and the burgeoning cryptoasset ecosystem.

“As the first ever public crypto brokerage desk by an exchange, this deal represents the true institutionalization of cryptocurrencies as an asset class,” Weinberg said in a statement. “Paycase’s partnership with the TMX solved a major problem in the blockchain ecosystem. With this partnership, we have built the first major bridge between the crypto world and the traditional financial markets.”

TMX, meanwhile, stated that the venture was a “significant step forward” in the firm’s digital strategy.

“Shorcan DCN represents a significant step forward in the execution of TMX Group’s digital strategy. As new technologies continue to reshape the global financial industry, we continue to explore new ways to evolve our business to address client needs in both traditional and non-traditional markets,” said John Lee, TMX Group’s managing director of enterprise innovation and product development.

The move establishes further links between TMX and the cryptocurrency space.

As CCN.com has reported, several cryptocurrency companies have already sought public listing on the firm’s TSX Venture Exchange (TSX-V), most notably Galaxy Digital — a cryptoasset merchant bank founded by billionaire hedge fund manager Mike Novogratz.

Coinsquare, one of Canada’s foremost cryptocurrency exchanges, has also said that it will hold an initial public offering (IPO) on the main TSX exchange later in 2018.

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