Finance & Economics

NYSE and Nasdaq to Get Competition From Texas National Stock Exchange, Backed by BlackRock and Citadel

The Texas Stock Exchange (TXSE) has reportedly secured about $120 million in funding from investors, including BlackRock, the world’s largest asset manager, and Citadel Securities, a market maker.

NYSE and Nasdaq to Get Competition From Texas National Stock Exchange, Backed by BlackRock and Citadel

Wall Street Journal reported on June 4 that a business group TXSE Group Inc backed by Wall Street giants BlackRock and Citadel Securities is planning to launch a new national stock exchange in Texas (TXSE). It is supposed to provide the competition for the New York Stock Exchange (NYSE) and Nasdaq.

The project to be headquartered in Dallas has reportedly secured a solid $120 million in funding from both individual investors and large investment firms. With the received financial backing, the future stock exchange aims to file registration statements with the United States Securities and Exchange Commission (SEC) by the end of 2024.

It plans to start facilitating trades in 2025 and host its first listing the following year, according to multiple media reports.

Crypto enthusiasts hope that the crypto-friendly state’s stock exchange, backed by prominent institutional crypto supporters, could feature more of the crypto players. So far, the Nasdaq hosts only a few crypto service providers, including crypto exchange Coinbase and Bitcoin mining firms Riot Platforms and Marathon Digital.

At the same time, the 11 approved spot Bitcoin exchange-traded funds (ETFs) are listed on both the Nasdaq and the New York Stock Exchange (NYSE). It is not a wonder that TXSE is also reportedly focused on securing ETF listings, probably including the crypto-related ones. By the time the new stock exchange gets the green light to launch, it will also have an opportunity to pursue Ethereum ETFs, which were approved by the SEC in late May.

Additional competition might give crypto investors and companies aiming to go public benefits such as lower fees and an opportunity for greater alignment in the equity markets.

“Changes in equities trading markets are driving more volume to exchanges and more choices for issuers and sponsors. TXSE will ultimately create more competition around quote activity, liquidity and transparency, resulting in more consistent and reliable markets that benefit investors, global issuers and liquidity providers alike.”

James Lee, founder and CEO of TXSE Group Inc

Nina Bobro

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Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.