(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.