LMAX launches Kiosk for on-chain collateral use

LMAX Group on Tuesday launched Kiosk, a hosted portal that lets institutional clients deposit digital assets into LMAX Custody and post those assets as on-chain collateral to trade spot foreign exchange, precious metals, contracts for difference, perpetual futures and digital assets across the firm’s venues.

LMAX said the portal provides a single interface for deposits and withdrawals, API credential management, WalletConnect support, security controls and treasury-management tools. Assets deposited through Kiosk can be earmarked as collateral and used to meet margin requirements without moving the assets off-platform.

The portal is available to institutional participants in LMAX’s global cross-asset marketplace. LMAX described Kiosk as a hosted solution that includes governance controls and connectivity for automated workflows and that supports collateral posting for multiple asset classes.

David Mercer, LMAX Group CEO, described Kiosk as offering a compliant route for institutions to integrate digital assets into core trading infrastructure, adding that “Hyper-efficient collateral will be the foundation of modern, converged capital markets.”

The launch follows similar initiatives by financial firms to enable tokenized holdings to serve as collateral. Earlier this year, Franklin Templeton began a program that allows tokenized money market fund shares to be used as collateral while the underlying funds remain in regulated custody. The Depository Trust & Clearing Corporation has announced plans for a pilot to enable trading in tokenized securities, with a target for full service later in the year.

LMAX said Kiosk is intended to reduce operational steps for treasury and operations teams that require secure credential management, audit controls and programmable access for automated trading systems. The company did not disclose client names or a timeline for a wider rollout beyond the initial announcement.