EDX Markets (EDX), a cryptocurrency exchange backed by Wall Street powerhouses Citadel Securities, Fidelity Investments, and Charles Schwab has launched today. According to a press statement, four digital currencies (Bitcoin, Ether, Litecoin, and Bitcoin Cash) will be available for trade on the platform. EDX will use third-party institutions and a crypto custodian to store customer assets. Furthermore, the company has revealed that it will be launching a clearinghouse later this year to expedite transaction settlement.
How EDX intends to navigate the rough crypto waters
Similar to the stock market, EDX will not directly service individual investors but rather anticipates that retail brokerages will route their clients’ orders to purchase and sell cryptocurrencies on its platform. Settlement of trades involving cryptocurrency and fiat currency will take place off-platform, and EDX will not handle them. Instead, businesses will have access to EDX’s trading platform to conduct cryptocurrency-to-fiat currency transactions. The goal of the non-custodial approach is to eliminate conflicts of interest while yet reassuring customers that their money is safe.
Noticeably, the exchange has avoided thousands of crypto tokens that the SEC considers to be financial securities. This is seen as a strategic decision to avoid the headwinds that companies like Coinbase and Binance have run into in recent days. The SEC has turned the heat on a number of crypto assets, including popular ones like Solana, Decentraland and the Sandbox, triggering a cautious approach to the assets.
“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,” said Jamil Nazarali, CEO of EDX.
Wall Street is clearly interested in mainstreaming digital assets, as evidenced by EDX’s support from Fidelity, Charles Schwab, and Citadel Securities. Other companies that have invested in the exchange include Paradigm, Miami International Holdings, DV Crypto, GTS, HRT Technology, GSR Markets LTD, Sequoia Capital, and Virtu Financial. This could bring in large inflows from whale investors, which could help propel the crypto market to new heights.