Blockchain service-oriented brokerage LMT.trade launched, potentially reshaping the trading gateway.

On November 12th, the Reshaping Crypto Trading event hosted by the service-oriented brokerage LMT successfully concluded in Singapore, announcing the official launch of the platform LMT.trade in Singapore. The platform focuses on providing customers with services such as full-position leverage trading, flash exchange trading, financing, financial structured derivative products, etc.

The platform has currently integrated multiple digital asset exchanges, consolidating order price and depth to meet the needs of customers for trading access and order execution. Users can achieve cross-platform spot trading on LMT.trade through executing algorithms. The platform currently provides various trading execution algorithms including stop-loss, time-weighted, price tracking, iceberg orders, sniper, etc., optimized for the digital currency field. Additionally, users can complete cross-platform leveraged trading through full-margin leverage accounts on the platform. This not only facilitates the entry of large funds but also reshapes the entrance to digital asset trading.

In the future, more structured product services in the digital asset field will be introduced, such as hedging products, ETFs, bull and bear certificates, and more.

LMT.trade was founded by Huo Li, the former General Manager of Huobi Capital. The team members graduated from prestigious universities such as Shanghai Jiao Tong University, the University of Hong Kong, Hong Kong University of Science and Technology, and worked at traditional financial institutions such as Merrill Lynch and the Royal Bank of Scotland. The project has currently received angel funding in the million-dollar range.

LMT.trade founder Huo Li stated that currently, services such as KYC, accounts, trading depth, and borrowing depth on global exchanges are decentralized. Trading on a single platform or transferring funds across platforms for arbitrage incurs unnecessary friction costs. Through a brokerage-style operation, LMT.trade aims to unify the entrance, integrate the entire network's KYC, liquidity, borrowing depth, and further provide brokerage services such as financing and financial structured products for customers.

In the traditional financial field, brokerages and exchanges play different roles, with brokerages offering customer trading and fund services while exchanges focus on matching services. Customers deposit funds into the custody accounts of brokerages' partnering custodians. When placing orders, the brokerage account places the order, and the custodian completes the clearing and settlement. Currently, in the blockchain field, exchanges often assume multiple roles, leading to issues such as unprofessional services and dispersed liquidity.

LMT.trade co-founder Jerry Xu pointed out that as the value center of current cryptocurrency trading, exchanges have not effectively addressed core issues in services, leading to situations where there are more exchange attendees than project parties and investors at some conferences. Based on this, LMT.trade introduces the traditional brokerage model into the blockchain field to address these pain points.

Firstly, LMT.trade aggregates network liquidity to reduce trading friction, essentially creating a unified entrance above exchanges. Huo Li stated that liquidity is the core of trading, but currently, each cryptocurrency exchange has independent liquidity systems, with a single exchange unable to handle large fund inflows and outflows. LMT.trade aggregates liquidity from various exchanges, effectively reducing friction losses caused by insufficient liquidity and depth.

Secondly, it lowers the barrier for new user participation, reshaping the exchange ecosystem. In the traditional financial field, once users complete KYC with a brokerage, they can trade on multiple exchanges; for instance, opening an account with CITIC Securities allows trading on both Shanghai and Shenzhen stock exchanges. In the cryptocurrency field, users need to complete KYC on each exchange separately, raising participation barriers and creating an uneven distribution among exchanges.

Thirdly, it enhances fund utilization efficiency, reducing fund losses during transfers and arbitrage. By aggregating depth from various exchanges, LMT.trade enables users from Exchange A to directly complete cross-platform trading on Exchange B when opportunities arise, without incurring time and transfer costs.

In the future, users can participate in trading on various exchanges after completing KYC on LMT.trade, significantly lowering the barrier for new user participation. Brokerages will be responsible for interfacing with customers, while exchanges focus on matching services, redistributing traffic, and potentially reshaping the exchange ecosystem.

Lastly, it will provide various trading and fund services. LMT.trade will offer multiple order types, fund custody services, financing, structured financial products such as hedging, ETFs, bull and bear certificates, to better serve customers.

Invited guest Roland Sun, Partner at Distributed Capital, stated in an interview at the conference: The brokerage track will have significant development in the future. In traditional finance, exchanges cater to B2B, which are brokerages. The brokerages then cater to B2C, providing more diverse professional financial products. Currently, exchanges have taken on too many functions, offering relatively standardized products (spot and contract). This approach is bound to lack specialization, and the future trend will move towards traditional finance.

Guests invited to the conference also included Distributed Capital Partner Remington Ong, Ripple XRP Capital Founder Michael Arrington, Proof Of Capital Managing Partner Edith Yeung, FBG Capital Founder Vincent Zhou, Matrixport Vice President Cynthia Wu, and other industry leaders.

This article is from our partner PANews

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