Daily Bitcoin News Update
Canada is about to set a big precedent for the world. The country’s stock exchange will soon become the first in the world to begin offering cryptocurrency brokerage services to its clients.
The holding company of Canada’s Toronto Stock Exchange (TSE), which is the ninth-largest stock exchange in the world, is launching a trading platform for cryptocurrencies, starting with Bitcoin and Ethereum. This marks a major breakthrough for cryptocurrencies.
Read it to mean that 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.
The TMX Group, which operates the Toronto Stock Exchange, 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).
Shorcan DCN has joined hands with blockchain-based financial services company Paycase Financial to get this venture off the ground. Leading Canadian bank BMO Financial Group will be providing the banking services for their crypto investors. (Source: “TMX’s Shorcan Announces Cryptocurrency Initiatives,” TMX, March 22, 2018.)
This venture helps Bitcoin on two fronts.
One, it quashes skepticism surrounding Bitcoin regulations and establishes it as a legitimate investment class in the country.
Two, 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.
I must point out here that TMX also operates a derivatives exchange south of the border. The Boston Options Exchange (BOX) is owned and run by the TMX Group. It may not be too far-fetched to speculate that this development may have a ripple effect across the North American market.
We expect this venture to eventually usher in a new wave of investment derivatives based on Bitcoin, similar to the Bitcoin futures launched in the U.S.
All in all, this is a big deal for Bitcoin, in particular, and cryptocurrencies, in general, which could spark a rally in prices once this initiative begins to bear its fruit.
Here’s what an industry insider has to say about it.
“This partnership signifies a collaborative convergence of regulators, financial incumbents and innovators that could open the floodgates for digital currency adoption across new markets.” (Source: “TMX to Launch World’s First Stock Exchange Cryptocurrency Brokerage Service,” Bitcoin Magazine, March 23, 2018.)
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