Matrix Exchange Ltd., based in Abu Dhabi, has received a license to operate a “global virtual asset MTF and custody service.”
The license is known as a “Financial Services Permission” (FSP), that allows holders to operate a regulated virtual asset Multilateral Trading Facility (MTF) and custody platform that is said to serve customers from around the global. The FSP issued by the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) in the United Arab Emirates, allows Matrix to serve retail customers, trading firms, and institutions from the Middle East, Asia, and Europe, among others.
In a note from the firm, Matrix Exchange said it will provide customers with a robust trading platform purpose-built for digital assets, and with secured and insured best-in-class cold storage services. Matrix Exchange’s initial products will consist of BTC, BCH, LTE, and ETH, all paired with US dollars. Matrix Exchange is scheduled to launch in the second half of 2020.
James Wo, Chair of Matrix Exchange Ltd. and founder of Digital Financial Group (DFG), said that Abu Dhabi’s history as a global trading hub makes it an ideal location for a regulated, licensed virtual asset MTF that enables us to serve markets from around the world.
“With a license from the forward-looking FSRA, Matrix Exchange Ltd. is poised to fulfill a current white space and meet the demand from markets that until now have been limited to unregulated regional exchanges.”
DFG is a global blockchain and virtual asset investment firm with offices in San Francisco, Shanghai, Singapore, and Abu Dhabi. The company reports managing investments in excess of $550 million AUM.
Matrix Exchange states that regional barriers are no more and both retail and institutional customers from around may access to one regulated platform. The company believes this will create an accessible and more efficient market for the industry.
Matrix Exchange will allow customers to convert fiat to virtual assets and settle trades in USD, an attribute they claim is extremely rare among digital asset trading venues.
The Gulf Cooperation Council (GCC) Region is said to be a market-ready for virtual asset investment. The GCC leads the Middle East in internet access and adoption of digital payments and has seen a 400% increase in alternative finance investments from 2013-2016, according to Global Findex.
Matrix Exchange expects to be the leader in the growth of global virtual asset trading aided by the fact it is first to market.
DFG manages a venture fund with equity holdings in blockchain companies, including LedgerX, Bloq, Circle, and Ripio among others. Successful exits have included Brave and Centre. DFG also led the launch of several key projects, including AToken the third-largest wallet service in Asia.