Hub Culture, a social network service that operates a digital currency called Ven, has announced today in Davos that LMAX, the London-based exchange, has agreed to list Ven, enabling brokers, banks and financial institutions to trade the digital currency.
This development can be seen as a groundbreaking event for institutional investments in digital currencies as LMAX is a regulated FX exchange authorized by the Financial Conduct Authority (FCA) to operate a Multilateral Trading Facility (MTF), as defined under MiFID. Brokers will for the first time be able to expose themselves to the digital currencies ecosystem without a need to correspond with an ad hoc solution.
Commenting on this, David Mercer, CEO of LMAX said: “Digital currencies, such as Bitcoin, have been the focus of a lot of attention over the last year. The challenge going forward is for them to become transferable. In order to become credible, virtual currencies have to be able to be used as a purchasing tool. Ven is ideal as the first virtual currency we are listing. But is also by no means the last, and fully we intend to exploit the market potential that credible virtual currencies have to offer.”
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Unlike the distributed crypto currency Bitcoin and its sort, Ven is a digital currency operated by the privately held companies comprising the social network HubCulture. The currency has previously been available exclusively inside the network, where over 30 million Ven have been exchanged since it first appeared as a Facebook app in July 2007. In December 2009, Hub Culture began using Ven as a micropayment system for content produced by members in the network.
Ven has a floating exchange rate but is asset-backed by a mix of fiat currencies, commodities and carbon. HubCulture boasts that Ven was the first digital currency to float, the first used in bilateral commodity trading, and the first to include carbon in its makeup, making it “the only environmentally linked currency in existence.”
Hub Culture Founding Director, Stan Stalnaker, commented on the launch at the World Economic Forum in Davos: “We believe Ven will help people transact in a direct way with a single price for goods and services and an embedded environmental benefit with every transaction. We are delighted that LMAX is the first regulated MTF to list Ven and see this as a significant step in the growth of what we believe will be a serious financial instrument going forward.”
In August 2013, Forex Magnates conducted an Executive Interview with Hub Culture’s Mr. Stalnaker in which he detailed his perspective on the next developments important to consider in the world of digital currency, focusing on Ven.