24 Exchange secures new digital asset license in Bermuda

abdelaziz Fathi

The Bermuda government has awarded a new affiliate of 24 Exchange, the OTC platform backed by Fastmatch founder Dmitri Galinov, a formal license under their Digital Assets Business Act of 2018 (DABA).

Dubbed ‘24 Exchange Broker Limited,’ the license issued by the Bermuda Monetary Authority allows the fintech firm to begin operating as a digital asset service vendor. The offshoot received a “Class T” Digital Asset Business Act license on February 8 and started operating a central dealer function for the crypto market.

Notably, the digital asset license enables 24 Exchange Broker to inaugurate crypto trading for its institutional customers, and also permits the users to trade digital assets through non-deliverable forwards (NDFs).

Dmitri Galinov, 24 Exchange CEO and Founder, said, “This BMA license for 24 Exchange Broker Ltd. enables us to bring spot cryptocurrency trading onto our institutional-grade platform, making it more available, accessible and standardized. We are pleased to continue to drive the institutional adoption of crypto products trading at the best available rates and with around-the-clock availability. Our company truly appreciates the efficient work of the Bermuda Government’s Office of FinTech and the Bermuda Business Development Agency – as well as their dedication to supporting the growth of the digital asset sector in Bermuda.”

24 Exchange said it has fully integrated its broker trading platform with Zero Hash and Fireblocks to allow for post-trade and custody solutions. Additionally, its existing partnerships with other crypto service providers allow for greater asset trading. For example, the alliance with Cobalt yields a solution for wallet and counterparty collateralization.

24 Exchange to offer US equities trading 24/7

24 Exchange had recently completed a fresh fundraising round of $14.25 million at an undisclosed valuation. The recent capital injection was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.

The investment supports the continued expansion of 24 Exchange’s multi-asset trading platform to embrace additional asset classes, including equities and cryptocurrencies.

Operated by 24 Exchange Bermuda Ltd, Dmitri Galinov’s brainchild is a multi-asset class platform that combines both cryptocurrency and FX trading on a single technology. The three-year-old startup is also planning to launch a 27/7 stock exchange in the US that will enable retail investors to trade with a minimum increment of one one-thousandth of a share.

Equally notable is that several global banks and hedge funds are now backing the firm, including Standard Chartered, which made a strategic investment in 24 Exchange in 2020.

24 Exchange has recently filed an application with the US Securities and Exchange Commission for a licence to run a US-regulated securities exchange. Subject to SEC approval, it would become the first national venue where stocks can be traded on a 24-hour basis, 365 days a year.

The move comes as founder Galinov, a veteran of electronic trading in FX and equities, is betting that deep-pocketed investors now want to trade stocks and currencies at the weekend.

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