As it prepares to launch the Texas Stock Exchange in the first quarter of 2026, Dallas-based TXSE Group has completed its second-round funding, bringing its total capital raised to more than $250 million.

TXSE Group also announced that J.P. Morgan has made an equity investment, and that it will join TXSE Group’s board of directors as an observer.

In June 2024, TXSE Group announced its plans to launch a stock exchange based in Dallas. At the time, it said it had lined up around $120 million in funding from BlackRock, Citadel Securities, and other investors including “prominent business leaders from around the country.”

“Our strong capital position validates our mission to bring increased competition to the U.S. capital markets,” James H Lee, founder and CEO of TXSE Group, said in a Friday statement. “The Texas Stock Exchange’s focus on alignment and transparency for issuers will alter the trajectory of our public markets and help establish Texas as a new global leader in capital markets.”

TXSE Group said its institutional backing now includes four pillars of the U.S. capital markets.

Along with J.P. Morgan, TXSE’s institutional investors include: BlackRock, the world’s largest institutional manager with $13.5 trillion of assets under management; Charles Schwab, the world’s largest retail organization with $11.6 trillion in client assets and more than 50% of U.S. equity retail order flow; and Citadel Securities, the largest global liquidity provider, which executes more than one in four shares traded in the U.S.

82 key equity holders

TXSE Group said that in all, 82 financial institutions and business leaders are equity holders in the company.

Those equity holders include individuals or entities that direct or control a broad array of public companies across multiple industries of various sizes, with a combined market capitalization in excess of $2 trillion, TXSE Group said. They also include seven of the 10 largest liquidity providers, representing more than 70% of total U.S. equity order flow.

In addition, the equity holders include several of the world’s largest exchange-traded product sponsors, representing 898 ETPs with a combined AUM of $8.5 trillion, or two-thirds of the capitalization of the total ETP market in the U.S., TXSE Group said.

TXSE Group is the parent company of the Texas Stock Exchange, which last month became the most well-capitalized equities exchange ever to receive approval from the U.S. Securities and Exchange Commission.

The Texas Stock Exchange is a fully integrated, electronic national securities exchange. It is backed by the world’s largest financial institutions and liquidity providers and is focused on enabling U.S. and global companies to access U.S. equity capital markets.

Don’t miss what’s next. Subscribe to Dallas Innovates.

Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.