London-based fintech startup AiX has implemented the very first Bitcoin-USD trade via artificial intelligence (AI). The firm's system—which plans to replace interdealer brokers with a fully automated AI—went live February 4, proving that time may well be up for human intermediaries.
AiX's foray into the financial industry started in the crypto markets, with the firm facilitating a BTC/USD trade between leading digital asset firms GSR Markets and DV Chain.
The AiX AI system operates by interacting with traders via direct message, matching clients wishing to buy or sell. This negates the need for human go-betweens who typically earn a commission by pairing buyers and sellers.
While the initial trade was solely Bitcoin-based, AiX intends to move into the traditional markets, pending a regulatory green light from the UK's Financial Conduct Authority (FCA).
Replacing human brokers with AI
“Our intent is to fully replace the human broker,” said Taylor Cable, the startup's chief operating officer, “Our approach is that we're going to be able to provide a platform that's a better experience, that's cheaper and at the same time has the ability to establish great relationships with our sales people so clients get the best of both worlds.”
Through its proprietary natural language AI system, AiX not only neutralizes the necessity for costly middlemen but also increases efficacy—executing matches at a rate unattainable through human efforts.
Facilitating over the counter (OTC) trades, the firm aims to "revolutionize" the sector by opening access to programmatic asset managers who are otherwise excluded from OTC markets.
Jos Evans, the company’s founder, said that he expects the company’s AI product to bring “much needed disruption to the world of inter-dealer brokers.”