This fund manager loves Abaxx Technologies

StoneCastle Investment Management president Bruce Campbell says Abaxx Technologies (Abaxx Technologies Stock Quote, Chart, News, Analysts, Financials CBOE:ABXX) has created a rare new futures and commodity exchange that could command significant strategic value as volumes grow.

On BNN Bloomberg’s Market Watch on Oct. 22, Campbell highlighted Abaxx’s launch of liquefied natural gas (LNG) and carbon credit futures, markets where no major exchange previously offered standardized contracts.

“They’ve actually built the first futures exchange and commodity exchange in a number of years. It’s taken them eight years to really get this done,” he said. “They’ve gone into an area that no other area has contracts on… it’s hard to believe that LNG never had a futures contract.”

Campbell said the company’s futures products began trading this summer and volume “continues to pick up and increase.” He added that the firm’s blockchain-based infrastructure has broader potential applications in areas such as securities and real-estate transaction settlement.

“The area that we really get excited about though, is this futures exchange,” he said. “It’s hard to believe that the existing players actually let this happen… if those players can protect it and not let it get taken out, then it’ll continue to grow and expand and then eventually get taken out. If not, then somebody’s going to come in and offer a pretty big price for this because of the technology… and the head start that they’ve got.”

Abaxx was conceived in 2017 and has spent seven to eight years securing regulatory approvals and commercial readiness.

“All the way along, people just sort of laughed at them… and then bang, they got the contracts up and trading,” Campbell said. “The margins on these are huge, especially once the trading volume comes up.”

Abaxx also recently announced the integration of its exchange data into TradingView, a widely used charting platform and trading network, strengthening access for professional and retail market participants.

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