Digital asset platforms are the new edge in trading technology – Interview with Adam Leonard, CEO, BlockEx

In the post-Bitcoin hysteria period of today, innovative digital asset platforms which are blockchain-centric are paving the way forward for various aspects of the future of the financial markets economy. BlockEx CEO Adam Leonard speaks to FinanceFeeds about the launch of an all new digital asset platform

The age of digital currency has come and almost passed, the remaining interest in its technological underpinnings being the lasting flavor, and the subject of vast venture capital investments from major banks, management consultancies and perhaps even more remarkably, seed funding enterprises giving record breaking rounds of funding to Bitcoin technology firms whose development of the intrinsic blockchain technology is considered by backers to be the framework upon which the automation of back office banking procedure will be built in future.

The Bitcoin exchanges have faded from public interest, tarnished by the failures of MtGox and subsequent legal finger-pointing that its founder and CEO Mark Karpeles was subjected to, and more recently the disappearance of the management team of Bitfinex along with $70 million of customer monies, of which all account holders are now set to share the burden with a 36% haircut per investor.

Adam Leonard

The mavericks and anarchists have given way to the technological leaders, and rightly so. Bitcoin, along with other peer-to-peer virtual currencies, was never, in its original format, going to be more than a fringe fraternity.

Evolution has now taken place, however, and innovation in terms of technology and market infrastructure integration is now the preserve of the leaders of today’s virtual asset markets, with blockchain technology being a central factor.

Today, FinanceFeeds spoke to Adam Leonard, CEO of digital asset exchange platform BlockEx, to take a look at how his company operates, and how he views the future of blockchain technology and the distribution of digital assets via centralized dedicated platforms.

How do digital asset brokers make money?

Fees: all trades will have a fee attached. Now some stock brokerages currently charge yearly fees and maintenance fees, these are discretionary options a broker could opt to charge, but given the inclusionary nature of Blockchain and Digital Assets, it may be a hard sell.

Leverage Trading: Significantly increased trading volumes (Fees) and earns daily interest on the open leveraged positions.

Trading Desk: We highly recommend our brokers to actively trade the markets.

How much money will a broker need to inject to profit?

Our recommendation is to start in Europe or Asia in countries where it is clearly stated that operating unregulated is allowed. BlockEx will not allow traders from the US market unless the broker is fully licensed which is expensive. So we suggest start with the clearest easiest path forward and save your money for marketing.

Based on that we suggest a budget of around 100k Euros. Keep in mind most current exchanges start with a fraction of that amount, but as we on-board more brokers your CPAs will rise. Right now CPAs are in the dollars, but that will not last forever. Neither will it being unregulated so again; the time is now to strike. You only get one chance to be first to market.

Are there any affiliates or IBs?

Currently, there are very few affiliates or IB’s. We are working to round up as many as possible to introduce to our brokers. We are also enticing some existing FX/CFD traffic suppliers to start testing their traffic with our early broker partners.

In summary, the time to launch a BlockEx DAXP is right now:

  • It’s cheap to enter while still unregulated.
  • It’s the most talked asset class anywhere, and you have a chance to offer a true marketplace financial asset to your traders.
  • An asset class you can confidently build a strong relationship with your traders and keep them longer because their success is your success.
  • This is a chance to play in the pool with some of the biggest banks in the world on a level playing field.Please contact us anytime to book a demo or meeting.
  • It’s a great hedge against the pressure currently on the FX/CFD.
  • Legally allowed to market in France, a country in which derivative advertising has been outlawed

BlockEx MVP: An interesting journey involving Isle of Man, KPMG and many detours!

BlockEx’ journey started almost two years ago in the Isle of Man. It was during the Crypto Valley Summit hosted by KPMG and the Isle of Man government where I began formulating the vision for BlockEx. It’s amazing that after nearly two years of research, building and tweaking the initial vision has pretty much stayed intact despite the many detours along the way.

Initially, BlockEx started off as a test, that if you built an exchange for retail traders that we could bring new liquidity to the Bitcoin market and advance consumer adoption. Back in 2013 most exchanges were built by Bitcoin enthusiasts for Bitcoin enthusiasts. The thought was if we built an exchange that operated in the same way as existing brokerages, day traders would start to trade Bitcoin.

BlockEx’ MVP is not your ordinary MVP. We are coming to market with an HFT capable exchange that includes advanced order types, a complete leverage product, a fully featured brokerage software suite, FIX connectivity, a digital asset creation tool, a clearing system for both fiat and digital assets and a brokerage onboarding tool that allows our brokerage partners to easily go live. Two years of hard work is finally ready to be unveiled.

Along the way from idea to MVP we faced many challenges that caused us significant delays. These include everything from finding the right banking partners to getting approval from the regulators all while not being 100% sure that we were building something people wanted and would use. The first iteration of the platform was tossed in the scrap heap and built from the ground up to satisfy the needs of institutions.

We have been very fortunate to have many backers who trust our vision. A large part of that is because when we have had a chance to cut corners to get here quicker we were not tempted into short-term gains at the expense of our ultimate goal, “To become the trust authority for issuing and trading digital assets”.

Read this next

Industry News

Exness Crowned as Best Global Multi-asset Broker at Forex Expo Dubai 2023

Cyprus-based Exness garners top honors at the Forex Expo Dubai, solidifying its esteemed position in the global financial arena.

Retail FX

CySEC cancels license of 101investing parent following €200,000 fine

The Cyprus Securities and Exchange Commission (CySEC) confirmed on Tuesday that it has wholly withdrawn the Cyprus Investment Firm (CIF) License of FX retail brokerage firm FXBFI Broker Financial Invest Ltd, trading as 101investing.

Retail FX

Scope Markets doubles down on Middle East: AED accounts ahead of GCC Equity CFDs

“To bolster our footprint in this thriving ecosystem, it was a strategic imperative to integrate AED accounts and introduce a slew of CFD equities reflecting the GCC landscape. This not only appeases the domestic audience but also beckons international investors aspiring to delve into these dynamic markets.”

Market News

Navigating the Complex World of Central Banks: Inflation, Rates, and Economic Growth

Inflation continues to loom large over both European households and businesses, leaving central banks in the region grappling with a prolonged battle to reach their target levels.

Institutional FX

QUODD partners with Blue Ocean for real-time after-hours market data

“Investors are increasingly global, and market data providers like QUODD are facilitating access to data that enables global traders to invest in US markets. Partnering with top-tier fintech providers like QUODD allows Blue Ocean to extend its reach to a new demographic of investors.”

Retail FX

Moomoo Canada launches pro-level tools, free Level 2 data, and affordable US stock trading

“Being a real social trading platform in Canada, we cultivate a unique ecosystem helping our users grow… The world is eager to hear the voice of Canadian individual investors, and we look forward to more contributions from Canadian investors in our moo community.”

Industry News

CFTC sues Patrick Wonsey for $3.4 million FX and binary options scam

Wonsey allegedly diverted these monies for personal use and orchestrated payouts to other pool participants, mirroring a classic Ponzi scheme.

Digital Assets

MoneyGram to launch non-custodial digital wallet

“In collaboration with SDF, MoneyGram has been working towards creating equitable access to the global financial system. With the introduction of this non-custodial digital wallet, we are further emphasizing our commitment to providing consumers with a bridge to the digital economy while upholding our brand’s integrity for speed, efficiency, and trust.”

Digital Assets

Binance exits Russia as part of crypto exchange’s compliance strategy

“As we look toward the future, we recognize that operating in Russia is not compatible with Binance’s compliance strategy. We remain confident in the long-term growth of the web3 industry around the world and will focus our energy on the 100+ other countries in which we operate.”