Oct 31 (Reuters) - TXSE Group said on Friday Wall Street

behemoth J.P. Morgan had made a strategic investment in the

company, becoming the latest to join a roster of marquee backers

of the Texas Stock Exchange-parent.

The total capital raised by TXSE, backed by financial

heavyweights BlackRock ( BLK ), Charles Schwab ( SCHW ) and

Citadel Securities, is now more than $250 million, with the

exchange preparing to launch in early 2026.

Analysts say this marks the first serious challenge to a

market long dominated by the New York Stock Exchange and Nasdaq

in a virtual duopoly since the 2000s.

"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's Founder and CEO James Lee said.

Texas has made no secret of its ambitions to rival New York

as the financial epicenter of the United States, pitching itself

as a lower-cost, business-friendly alternative for firms and

investors.

The Lone Star State has attracted several top companies,

including Elon Musk-led Tesla and SpaceX, which have

moved their headquarters to Texas.

Earlier this year, Nasdaq said it will open a

regional headquarters in Texas. NYSE-parent Intercontinental

Exchange ( ICE ) had also announced it will launch an exchange

in Texas, increasing competition among listing venues in the

state.

TXSE said a total of 82 financial institutions and business

leaders are now its investors, including seven of the top 10

largest liquidity providers which represents more than 70% of

total U.S. equity order flow.

Such backing is crucial for a new exchange as it ensures

access to deep liquidity and trading volume, key factors in

attracting listings and establishing credibility with market

participants.

The company added J.P. Morgan will join its board of

directors as an observer.