LMAX Group has hired Morgan Stanley and KBW to assess strategic options that could value the institutional trading company at up to $5 billion, including a sale or a public listing.

Three people familiar with the private discussions said LMAX is working with Morgan Stanley and KBW, an investment bank owned by Stifel, as it evaluates several possible paths. According to one of the people, the company could pursue a direct sale, merge with a special purpose acquisition company, or launch an initial public offering in the United States or Europe.

A Nasdaq IPO is currently LMAX’s preferred option, the person added. However, no final decision has been made. Another person familiar with the process said LMAX is not under pressure to go public while cryptocurrency prices remain weak, because revenue from its established foreign exchange operations gives the company room to wait for more favorable market conditions.

A potential $5 billion valuation would be five times the level assigned to LMAX in July 2021. At that time, private equity firm J.C. Flowers agreed to acquire a 30% stake for $300 million, valuing the group at about $1 billion.

LMAX said the J.C. Flowers investment would support its expansion across institutional foreign exchange and cryptocurrency markets. The transaction also provided additional capital as regulated financial firms began building services connected to digital assets.

Nasdaq leads LMAX’s listing options

London-based LMAX operates trading venues and infrastructure for banks, brokers, hedge funds and asset managers. According to the company, its services span foreign exchange and digital assets through an agency execution model that provides clients with access to transparent order books and low-latency systems.

The group is regulated by Britain’s Financial Conduct Authority, a status LMAX has used while developing products for institutions that require regulated venues. Its business differs from retail-focused crypto exchanges because its clients include financial firms seeking execution, liquidity and settlement services.

People familiar with LMAX’s review said the company has also benefited from increased institutional participation after the approval of spot Bitcoin exchange-traded funds in the United States. Those sources linked the expansion of regulated crypto products to renewed interest from banks and asset managers seeking exposure to digital assets.

Despite that interest, the timing of any listing remains uncertain. One person familiar with the discussions said current weakness in crypto markets has reduced the need for an immediate transaction, while LMAX’s foreign exchange business continues to prevent the company from depending entirely on digital asset trading activity.

A Nasdaq debut would put LMAX among a growing group of cryptocurrency and market infrastructure companies seeking access to U.S. public capital. A U.S. listing would also subject the company to public-company disclosure requirements, giving investors more visibility into how its foreign exchange, crypto execution and custody operations contribute to revenue. Still, people familiar with the talks said a sale and other listing structures remain under consideration, giving LMAX flexibility to change direction if market conditions or buyer interest improve.

LMAX expands its institutional crypto infrastructure

Over the past year, LMAX has added products designed to connect custody, collateral management and round-the-clock trading. In February, the company introduced a 24/7 multi-asset exchange built to support foreign exchange, precious metals, digital assets, commodities and tokenized securities.

LMAX said the platform allows institutional clients to trade both traditional and tokenized instruments outside standard market hours. By combining several asset classes within one venue, the company aimed to extend its operations beyond spot cryptocurrency trading.

A month earlier, Ripple invested $150 million in LMAX through a strategic agreement intended to increase institutional use of the RLUSD stablecoin. According to the companies, LMAX would integrate RLUSD into its trading and settlement network, giving institutional clients another option for moving funds between digital asset markets.

LMAX continued the product rollout in May by launching Kiosk, a hosted portal that allows clients to deposit digital assets into LMAX Custody and use them as collateral across multiple markets. As previously reported by crypto.news, Kiosk supports spot foreign exchange, precious metals, cryptocurrencies, contracts for difference and perpetual futures.

According to LMAX, the portal combines custody, collateral access and trading support in one workflow. Its tools include deposits, withdrawals, API credential management, WalletConnect access, security controls and treasury management.

The company said Kiosk is designed for institutions that want to use digital assets without separating custody and trading functions across multiple systems. Clients can keep assets in LMAX Custody while using them to support positions offered through the group’s trading network.

LMAX’s strategic review comes during an active period for crypto-related acquisitions. Kraken parent Payward has agreed to acquire derivatives platform Bitnomial, while Bullish, the owner of CoinDesk, has announced a $4.2 billion deal to purchase Equiniti and expand into tokenization and transfer agency services.

For LMAX, the review gives its advisers multiple ways to value a business that spans foreign exchange, crypto execution, custody and tokenized markets. Morgan Stanley and KBW will evaluate those options as the company weighs buyer interest against the timing and potential pricing of a Nasdaq listing.