Cryptocurrency and other digital asset trading volumes have grown meteorically over the past year, and there is a need from institutional investors for a trusted, industrial strength exchange in this space. Thus we are building Mercury Exchange as a wholesale platform, not as a retail platform. Proven technology, regulation, liquidity and custodianship are the foundation of a reputable wholesale exchange. One with security, reliability, rules, protocols and proper compliance structures that investors and market participants can rely on as they trade crypto assets. Mercury Exchange is building that exchange.
To date, most of the growth in digital asset trading is due to private individual trading. Large Wall Street firms are for the most part sitting on the sidelines, avoiding the reputational and regulatory risks of trading on exchanges that don’t meet their technical or compliance standards
Among all these activities, an institutional grade exchange, the likes of NYSE and NASDAQ, for the spot market is still missing. Existing cryptocurrency exchanges for the spot market grew out of technologies that were just good enough for individual investors and were not built with institutional investors in mind. They lack the security, reliability, performance, and feature set that is expected of an institutional grade exchange. With our expertise in building the underlying technology architecture for Intercontinental Exchange (ICE), one of the major futures exchanges, we believe we can fill this gap.
- Salient features of our technology solution
- Security and reliability as the focus.
- Industry standard connectivity protocols.
- Institutional grade account and risk management.
- Hosted in a datacenter to provide predictable latency and connectivity.
- List major cryptocurrencies (Bitcoin, Ethereum, Lite Coin, Bitcoin Cash).
- Ability to exchange any listed instrument for any other.
- And, perhaps most importantly, a feature, uniquely known to us, to transfer liquidity from one part of the market to the other. This will improve overall liquidity, and as mentioned previously, more liquidity draws more liquidity. We believe this gives us a powerful competitive advantage and we will seek patent protection for this technique.
Institutional investors require that the exchange they trade on abides by current and future government regulation. We are working with several major law firms to ensure that Mercury is in compliance. We plan to get the Bit License certification from the state of New York (NYSDFS). There are two regulatory agencies that control the Exchanges in the USA, the CFTC and the SEC, and regulatory responsibilities are evolving. Mercury’s advisory board and legal team are watching this evolution closely and will build to meet current and future standards with respect to any future regulator.
We have successfully made deal with one of the biggest law firms in Philadelphia, Dilworth Paxson to help us with regulation. PR is on the LinkedIn.