Shorcan Digital Currency Network (Shorcan DCN), a wholly-owned subsidiary of Canada-based stock exchange operator TMX Group, is partnering with Toronto-based Paycase to set up a cryptocurrency brokerage service that will focus initially on Bitcoin and Ether.
The Toronto Stock Exchange owner says the new unit will also work with BMO Financial Group to handle its banking services as part of the initiative’s payment and settlement infrastructure.
The product will be rolled out to clients in a multi-phased approach, beginning in Q2 2018.
Canadian exchange operator’s subsidiary will leverage the expertise of Shorcan Brokers, which TMX acquired in 2006, to run its Bitcoin and Ether-focused brokerage services. TMX’s Shorcan Brokers is a dedicated unit to provide investors in the Canadian financial industry with brokerage services.
Together with Paycase’s data aggregation platform, Shorcan DCN will create cryptocurrency benchmarks based on consolidated data from top digital currencies venues as well as over the counter brokered volumes.
This combined offering will secure the required liquidity and resources to build out the technology needed to create these ongoing data indices at any time, particularly with the new product focusing on the largest cryptocurrencies in terms of capitalization. Accordingly, the permanent volume of orders on the market will ensure decent demand and supply levels.
That said, Shorcan DCN is providing banks, hedge funds, brokerage companies, stock exchanges, financial institutions and professional investors with the ability to execute orders at the best prices, better manage their trading business and reduce costs.
Founded in 2014, Paycase is a provider of decentralized financial services, most widely known for its mobile remittance platform, which enables people to transfer money around the world with fees that are 60% lower than those charged by traditional remittance companies. Paycase has recently applied to join the Ontario Securities Commission’s FinTech advisory committee in a bid to facilitate launch of its regulated Canadian Bitcoin exchange.
Commenting on the news, Peter Conroy, President of Shorcan, said: “We are excited to enter in to this agreement with Paycase, an industry leader with an innovative and entrepreneurial spirit. We look forward to putting in the necessary collaborative work in the days ahead as we strive to make Shorcan DCN a lasting success.”
John Lee, Managing Director of Enterprise Innovation & Product Development at TMX Group added: “Shorcan DCN represents a significant step forward in the execution of TMX Group’s digital strategy. As new technologies continue to reshape the global financial industry, we continue to explore new ways to evolve our business to address client needs in both traditional and non-traditional markets.”