A Hong Kong-based cryptocurrency exchange AAX has bought trading technology from the London Stock Exchange, the first such deal in the history of LSE, reports Financial Times.
While LSE has previously sold the system to traditional stock exchanges in Hong Kong and Singapore, it is the first time it went to a crypto exchange.
Similarly, other crypto exchanges have already bought tech from traditional ones, since technology brought from regulated markets “is safer for investors,” said Peter Lin, chief executive at Atom.
However, many blockchain businesses opt for building their own technology to counter hacking and money losses. This also provides traditional stock exchanges with opportunities to adapt the tech made by blockchain businesses, FT writes.
Etelka Bogardi, a partner at Norton Rose Fulbright in Hong Kong, said, “I think the trend is now a two-way street between crypto exchanges trying to leverage or purchase expertise from established exchanges in the non-crypto space, and established exchanges partnering with crypto expertise to leverage the underlying blockchain technology for the traditional securities space.”