EDX Markets, a Wall Street-backed trading platform, is here! Institutional-only, non-custodial model

PANews · 2023-06-21T03:50:01.000Z

Organized by: Felix, PANews According to news on June 20, the Wall Street Journal reported that EDX Markets (EDXM), a new cryptocurrency exchange backed by Wall Street giants such as Citadel Securities, Fidelity Investments, and Charles Schwab, has begun executing transactions in recent weeks and is now officially Announced the launch of a trading service that will offer trading in four cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash (these assets are not recognized as securities by the U.S. Securities and Exchange Commission). In addition, EDX Markets announced the completion of a new round of financing, with investors including Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology, Charles Schwab, Citadel Securities, Fidelity Digital Assets SM, Paradigm, Sequoia Capital and Virtu Financial. The new funding will support EDX in continuing to develop its trading platform.

Compiled by: Felix, PANews
On June 20, the Wall Street Journal reported that EDX Markets (EDXM), a new cryptocurrency exchange backed by Wall Street giants such as Citadel Securities, Fidelity Investments and Charles Schwab, has begun executing transactions in recent weeks and has now officially announced the launch of trading services, which will provide four cryptocurrency transactions, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash (these assets have not been identified as securities by the U.S. Securities and Exchange Commission).
In addition, EDX Markets announced the completion of a new round of financing, with investors including Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology, Charles Schwab, Citadel Securities, Fidelity Digital Assets SM, Paradigm, Sequoia Capital and Virtu Financial. The new funds will support EDX to continue to develop its trading platform.
In fact, EDX Markets is an institutional-only exchange that will not directly handle clients' digital assets or directly serve individual investors. It debuted in September last year. Unlike existing crypto trading platforms such as Binance and Coinbase, EDX Markets draws on traditional financial standards. Similar to trading stocks and options, EDX Markets will allow investors to buy and sell digital assets through existing broker-dealers, rather than through external venues or directly through cryptocurrency native exchanges. EDX Markets will operate as a "non-custodial" exchange and will not hold clients' digital assets during transactions. It will provide API-based trading access rather than a traditional front-end user interface. The non-custodial approach is designed to alleviate concerns about security and potential misuse of client funds and avoid conflicts of interest.
Instead, EDX Markets will provide a platform where institutions can execute trades between cryptocurrencies and fiat currencies. Jamil Nazarali, CEO of EDX Markets, said EDX is working with third-party custodians. It intends to use third-party banks and cryptocurrency custodians to hold customer assets. And it will launch EDX Clearing later this year to settle trades matched on EDX Markets. This move may reshape the digital asset landscape amid increased U.S. scrutiny of the industry.
“We are taking some of the best features of traditional finance and bringing them to the digital marketplace to create efficiencies and provide cost savings for investors,” Nazarali said.
Regarding the team, it is understood that Jamil Nazarali, CEO of EDX Markets, was previously the head of global business development at Citadel Securities. David Forman is the former chief legal officer of Fidelity Brokerage Services and is currently the general counsel of EDX. The exchange's chief technology officer, Tony Acuña-Rohter, was previously the chief technology officer of ErisX, which is now affiliated with Cboe Global Markets.
The technical development of EDX Markets is provided by MEMX. It is reported that MEMX (Members Exchange) is a stock exchange established by mainstream Wall Street banks, electronic trading companies and asset management giants. It is also the youngest stock exchange in the United States.
Nazarali said EDX’s system will be based in a data center in Secaucus, New Jersey, using software that ensures trades are processed in the order they were sent. Nazarali said this type of order processing and management is different from how most cryptocurrency exchanges operate.
Regarding the number of tokens listed, Nazarali said: “We have a limited number of tokens because we don’t want to trade something that could be a security until there is more regulatory clarity.”
As the US SEC sues Binance and Coinbase and lists many tokens such as SOL as securities, we will have to wait and see whether EDX Markets, an exchange endorsed by traditional Wall Street giants and entering the market in a high-profile manner, is sending out regulatory signals and whether the crypto industry will move towards the traditional field from now on.
References:
https://www.businesswire.com/news/home/20230620110605/en/Digital-Asset-Platform-EDX-Markets-Begins-Trading-and-Completes-New-Funding-Round
https://www.theblock.co/post/235607/charles-schwab-citadel-backed-crypto-exchange-goes-live-today-wsj