Two industry giants in the financial sector have continued to move into cryptocurrency, and that can be seen with their recent investment in ErisX, a crypto exchange familiar to Wall Street.
Today in an announcement, ErisX, the crypto exchange based in Chicago, revealed that they have obtained a $27.5 million investment from Fidelity Investments and Nasdaq Venture, without mentioning the number of investments owned by the firms.
“With increasing financial support from leading edge firms, ErisX stands to provide the most robust, secure and regulated digital asset offering available to both institutional and individual participants,” Thomas Chippas, ErisX CEO, stated. “Closing this second round of funding enables us to continue building our modern platform and expand our team.”
Other noteworthy crypto firms also participated in the investment round such as ConsenSys, the development studio of Ethereum and also Bitmain, a big player in cryptocurrency mining.
“Many of our customers have been seeking various hedging solutions and would be happy to see US regulatory compliant exchanges like ErisX provide spot and futures’ contracts in one platform,” disclosed Jihan Wu of Bitmain. “We are confident that our customers will find this strategic partnership beneficial.”
ErisX stated on their website that both futures contracts, as well as spot cryptocurrency trading, will be made available by them and that they will give initial support for Bitcoin cash (BCH), Litecoin (LTC), Bitcoin (BTC), and Ethereum (ETH).
The launching for the spot contracts will be in Q2 2019 and there are more plans by the firm to make available various option products and futures products at a later date in the year once they are able to secure CFTC approval which will enable them to function in the capacity of a Derivatives Clearing Organization (DCO).
In order to expand their service reach to the whole of the US, ErisX intends to obtain licenses, in addition to the CFTC, from all the states that make up the US, so that investors will be able to make use of fiat currency for trading on their exchange from any part of the US.
In the past, ErisX had obtained investments from different sources such as Virtu Financial, a fast trading firm, TD Ameritrade, a retail brokerage and CBOE, an options exchange which also was the first exchange in the US to initiate the listing of Bitcoin futures products. By the participation of Nasdaq and Fidelity, Wall Street is expected to be more convinced about the potentials in cryptocurrency which should not be overlooked and also that ErisX is a crypto trade platform of reputation which is different from other unregulated cryptocurrency exchanges in existence.
In the meantime, the two giant firms are working on their separate cryptocurrency products which will be unveiled in time to come. Fidelity is working on a custody service operated with cryptocurrency for institutional traders and on the other hand, Nasdaq, the second-biggest stock exchange in the world, has announced that come 2019, they will list their first “regulated crypto 2.0 futures-type contract”.