FINTECH BLOG

TMX Group and Paycase Financial Announce First Cryptocurrency Brokerage by a Major Exchange

TMX Group to Launch Cryptocurrency Brokerage

Cryptocurrency investors rejoice! TMX Group, the operator of Canada’s leading stock exchange, has announced that its wholly-owned subsidiary, Shorcan Digital Currency Network, will partner with a specialist in decentralized financial services, Paycase Financial, to launch a cryptocurrency brokerage service. The partnering will use BMO Financial Group’s payment and settlement infrastructure and Paycase’s cryptocurrency aggregation platform to provide clients with “liquid, efficient and reliable brokerage services”. The news is perhaps another example that cryptocurrencies are here to stay.

Initial Focus will be on Bitcoin and Ether

The brokerage, named “Shorcan Digital Currency Network”, will initially focus on trading of Bitcoin and Ether, and is anticipated to launch in the second quarter of 2018. While TMX Group has not released further statements detailing how the brokerage will function, the brokerage intends to compile data on cryptocurrencies and establish public performance benchmarks based on data from the world’s leading cryptocurrency exchanges and over the counter brokered volume.

A Move that Highlights Canada’s Innovative Spirit

The partnership is a step forward in the execution of the TMX Group’s digital strategy and showcases the innovative and entrepreneurial spirit in Canada’s thriving traditional and non-traditional markets. Canada will not only be home to the first public cryptocurrency brokerage but is paving the way for the financial world of the future.

“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.” — John Lee, Managing Director, Enterprise Innovation & Product Development, TMX Group

The brokerage will certainly put Bitcoin and Ether under the microscope and may bring more legitimacy to the market in Canada. Similarly, by focussing on Bitcoin and Ether, the TMX Group has implicitly backed their stability. But will the new brokerage incite new investors to dip their toes into the e-currency markets? We will have to wait until the launch date to tell.

About the Authors

KELLY SAMUELS
Kelly Samuels, partner, brings a knowledge of business law to the rapidly growing fintech sector.
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FRASER HARTLEY EKB Fintech Author

FRASER HARTLEY
Fraser Hartley, partner, is focused on financing + technology, and helping the businesses that bring the two together.
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riley lelonde ekb fintech author

RILEY LaLONDE
Riley Lalonde, associate, assists clients with a variety of business law matters while keeping an eye on developments in the fintech sector.
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