Toronto Stock Exchange Operator to Launch Cryptocurrency Brokerage Platform


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

The partnership 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 supply 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 significant 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 partnership was a «significant step forward» from the firm's digital plan.

«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 company to address client needs in both traditional and non-traditional markets,» said John Lee, TMX Group's managing director of business innovation and product development.

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

Since CCN has reported, many cryptocurrency businesses have already sought public record 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 it will hold an initial public offering (IPO) on the primary TSX exchange later in 2018.