Updated 20.6.2023 19:59
The New Crypto Exchange, EDX Markets, is Backed By Wall Street Firms, Including Charles Schwab, Fidelity Digital Assets and Citadel Securities
As U.S. regulatory scrutiny continues to grow, here’s why the new crypto exchange could reshape the entire cryptocurrency sector.
EDX Markets (EDX) announced this morning the launch of its new crypto exchange designed to provide traders with a trusted, efficient, and liquid cryptocurrency trading experience. The “first-of-its-kind digital asset marketplace” aims to offer traders a safe and compliant platform to trade cryptocurrencies via trusted intermediaries.
The new crypto exchange boasts a strong coalition of founding investors, including Wall Street heavyweights Charles Schwab, Fidelity Digital AssetsSM, Citadel Securities, Sequoia Capital, Paradigm and Virtu Financial. EDX recently bolstered its list of strategic investors after closing a new round of financing, which saw the firm, secure new investments from Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology.
In a LinkedIn post this morning, EDX Markets CEO Jamil Nazarali wrote:
“I am proud to announce that EDX Markets (EDX) has successfully launched our digital asset market and completed an investment round with new equity partners. EDX’s official launch allows our outstanding team to bring to crypto the same values and standards of competition, transparency, fairness and safety that investors in traditional assets expect and enjoy. With plans to launch a separate clearinghouse business next year, I look forward to our continued growth and remain confident in EDX’s mission of providing our customers with a trusted, efficient and liquid cryptocurrency trading experience.”
Source: CNBC Television YouTube
EDX Markets differentiates itself from other crypto exchanges due to the fact that it operates on a “non-custodial” business model. This means EDX does not hold its clients’ digital assets during trading. Instead, trades are executed through a financial intermediary, similar to those on major stock exchanges like the NASDAQ or the New York Stock Exchange (NYSE).
EDX CEO Jamil Nazarali believes financial regulators will appreciate his firm’s alternative approach to crypto trading, noting the importance of having a separation between the function of the exchange and the broker-dealer.
Nazarali explained why in an April 2o23 interview with CoinDesk, saying:
“What we’re seeing is that increasingly, investors want to trade through their trusted intermediaries, and that’s especially true post-FTX, which was supposed to be the leader in the digital market. If you can’t trust them, who can you trust? So people are falling back on the firms that have been around for a really long time and that have really stood the test of time, and that’s a really important tailwind for us.”
EDX says it plans to launch its new clearinghouse business EDX Clearing later this year to settle trades matched on EDX Markets and provide clients with “the most competitive and capital-efficient market through a single settlement process.”
Nazarali explained, adding:
“EDX’s ability to attract new investors and partners in the face of sector headwinds demonstrates the strength of our platform and the demand for a safe and compliant cryptocurrency market. We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices. With the endorsement of our new and growing list of investors and customers, we’re proud to launch trading and look forward to further enhancements to our offering. Looking ahead, EDX Clearing will be a major differentiator for EDX — and resolve an unmet need in the market – by enhancing competition and creating unparalleled operational efficiency through a single settlement process.”
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks or cryptocurrencies mentioned in this article.