EDX Markets, a cryptocurrency exchange with backing from major Wall Street players such as Citadel Securities, Fidelity and Charles Schwab, officially launched on Tuesday.
See related article: SEC lawsuit sees Binance.US wobble, trading platforms delist cryptos
Fast facts
The New Jersey-based exchange will offer Bitcoin, Bitcoin Cash, Ethereum and Litecoin trading services. These four cryptocurrencies are among those not named as securities by the U.S. Securities and Exchange Commission.
In addition to its launch, EDX has completed a new funding round from investors, including options exchange operator Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR and Hudson River Trading, the exchange said in a press release on Tuesday.
EDX said it plans to introduce a clearinghouse later this year to facilitate the transactions and exchange of payments.
The firm describes itself as a non-custodial exchange or a trading platform that does not directly handle customers’ digital assets. Instead, it has adopted a model similar to traditional stock markets where brokerage firms book orders from investors, as reported by The Wall Street Journal.
The risks intertwined with custodial models became evident last year with the collapse of the Bahamas-based exchange, FTX. The U.S. SEC also leveled allegations against Binance, the largest cryptocurrency exchange in the world, accusing it of mixing customer assets.
EDX’s launch comes amid the SEC’s intensifying scrutiny of major cryptocurrency exchanges, including U.S.-based Coinbase and Binance.US, for alleged breaches of securities rules.
See related article: The SEC has spoken: The future of finance is not in America
