AAX Exchange to Bridge Cryptocurrency and Traditional Financial Markets

The cryptocurrency exchange space is crowded: data comparison websites show over 300 cryptocurrency trading platforms are out there, with some standing out due to controversial revenue models.

Cryptocurrency trading platform AAX is aware of these market conditions but is not too concerned. “It’s all about differentiation,” Thor Chan, CEO of AAX, explained. “It’s about quality and consistency.”

AAX is on a mission to connect crypto to global finance. In doing so, the team has developed proprietary technology but also leverages well-established technology, all to make the trading experience as smooth as possible.

The company’s roadmap is geared towards serving a tokenized economy, and to provide a way for cryptocurrency traders to gain exposure to a wide variety of assets. The exchange has put a purpose-built wallet system in plance, which provides a single balance from which to trade across spot, futures, and OTC markets. The exchange is best known for being powered by London Stock Exchange Group’s LSEG Technology. Specifically, AAX runs the same matching engine as London Stock Exchange.

According to Chan, the matching engine can handle institutional order volumes with ultra-low latency. It’s also MiFid II compliant by design, syncing AAX with regulations around market integrity, which works to instill investor confidence.

 As Chan put it:

“Only exchanges that take market integrity, security and performance very seriously, and the ones that are innovative will be able to grow with the industry.”

Taking No Chances

In an interview, Chan detailed that AAX isn’t just prioritizing quality when it comes to the exchange’s engine and services, but also when it comes to security for both assets and client data.

From day one, the team has worked with global security solutions provider Kroll, which has advised major financial institutions, governments, and intelligence agencies over the course of 45 years. The cryptocurrency exchange leverages various security features to keep its users’ funds and data safe, including a multi-tiered system across hot and cold wallets, encryption techniques, invisible watermarks, access controls, and maker-checker authorization systems.

In future, AAX plans to operate as a type of subsidiary to major capital markets, making the flow of capital between crypto and traditional markets simple. It’s already building towards that goal, as a recent listing for commodity token PhiGold (PGX) shows.

The PGX token was issued to raise capital to fund mining operations at a gold mine in Southeast Asia. The gold extracted will be converted to LBMA bullion gold to be held in a Trust, and PGX holders will be able to redeem their tokens at the spot price of gold in a few years.

The investment opportunity stands out as this investment space is usually only available for investment banks and the elite. If successful, it could see retail investors buy gold with a hefty discount, as they bought it before it was even extracted from the ground.

AAX Token (AAB)

AAX recently launched its own utility token, AAB. The token has a total supply of 50 million and is governed by an aggressive monetary policy that will see AAX use the funds it earns through trading fees to buy and burn AAB on a daily basis.

AAB tokens will be burned until half of the total supply has been destroyed. The token itself will give users discounts on fees on spot and futures trades of up to 50%, and give them access to exclusive services such as trading bots, trading signals, and other premium offerings.

When asked about how AAX’s native exchange token will be able to “cut through the noise and bring the much-needed value to its users,” the exchange’s CEO answered that it’s all about the exchange’s premium services and not the token: AAB gives users access to discounts and special services such as the Native Exchange Token Index, which allows traders to invest in the crypto exchange space.

In short, the AAB token is meant to foster a sense of community around AAX while rewarding the cryptocurrency trading platform’s early supporters.