Institutional crypto trading platform LMAX is exploring sale, IPO — SkimNews
SkimNews Take
LMAX's reported $5B valuation and Nasdaq preference point to institutional crypto capital concentrating in regulated exchange infrastructure rather than token issuers or consumer platforms.
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- LMAX Group is working with Morgan Stanley and KBW (part of Stifel) to evaluate strategic options including a sale, SPAC merger, or IPO, with a Nasdaq listing currently the preferred route.
- Sources said a deal could value LMAX at up to $5 billion — quintuple its ~$1 billion 2021 valuation — though the company is in no rush given its core FX business insulates it from weak crypto markets.
- Ripple made a $150 million strategic investment in LMAX in January to expand institutional adoption of its RLUSD stablecoin through LMAX's trading and settlement network.
- In February, LMAX launched a 24/7 multi-asset exchange covering FX, commodities, tokenized securities, and digital assets, positioning the firm as a bridge between crypto and traditional finance.
- J.C. Flowers acquired a 30% stake in LMAX for $300 million in July 2021, valuing the firm at approximately $1 billion at the time.
- Bullish announced a $4.2 billion purchase of Equiniti to expand into tokenization and transfer agency services, while Payward (Kraken's parent) agreed to acquire derivatives platform Bitnomial — part of accelerating crypto deal activity.
Why it matters: LMAX's potential $5 billion valuation marks a 5x jump from its 2021 $1 billion mark under J.C. Flowers, signaling institutional appetite for regulated venues that bridge TradFi and crypto. With Ripple already on the cap table and its FX book providing cushion during crypto downturns, a public listing would crystallize one of the few FCA-regulated institutional crypto trading platforms.
Ask SkimNews
