LMAX taps Morgan Stanley and KBW for potential $5 billion IPO

Institutional crypto trading platform LMAX Group is working with Morgan Stanley and KBW to evaluate strategic options that could include a sale or public listing, according to three people familiar with the matter.

The London based company could seek a valuation of up to $5 billion. Options under consideration include a sale, SPAC merger, or IPO in the United States or Europe, with a Nasdaq listing currently the preferred route.

LMAX is reportedly in no rush to complete a transaction as weak crypto markets weigh on the sector, while its foreign exchange business provides some protection from the downturn.

LMAX operates institutional trading venues for foreign exchange and digital assets, providing execution, liquidity, and market infrastructure to banks, brokers, hedge funds, and asset managers.

The company has expanded its digital asset operations over the past year. In February, it launched a 24 hour multi asset exchange for foreign exchange, digital assets, commodities, and tokenized securities.

The launch followed a $150 million strategic investment from Ripple in January to support the adoption of its RLUSD stablecoin across LMAX trading and settlement infrastructure.

A $5 billion valuation would represent a fivefold increase from 2021, when J.C. Flowers acquired a 30% stake for $300 million, valuing LMAX at approximately $1 billion.

The potential transaction comes as crypto exchanges and financial infrastructure companies pursue deals to expand institutional trading, custody, settlement, tokenization, and stablecoin services.