EDX Market, supported by Fidelity Investments, Citadel Securities, and Schwab, launches cryptocurrency exchange services.
Wall Street Journal reported on June 20 that EDX Markets, a Non-custodial cryptocurrency exchange backed by major broker-dealers, global market makers, and venture capital firms, will announce its launch today.
The cryptocurrency market reacts to the entry of EDX Markets and several traditional financial services firms. The filing of BlackRock iShares spot Bitcoin ETF with the U.S. Securities and Exchange Commission (SEC) last week restored industry optimism.
EDX Markets Commence Cryptocurrency Trading
In recent weeks, EDX Markets, supported by market leaders such as Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial, has quietly begun executing trades.
While EDX Markets seeks to attract brokers and investors interested in crypto assets, it remains concerned about increased scrutiny from U.S. regulators due to problems at FTX and Binance. Despite regulatory crackdowns spearheaded by the Securities and Exchange Commission (SEC), Wall Street firms are still interested in cryptocurrencies.
It is a first-of-its-kind exchange that will address the latent demand for trading digital assets by facilitating the safe and compliant trading of digital assets through trusted intermediaries. It differs from most crypto exchanges in that it is a “Non-custodial” exchange, meaning it does not directly manage its customers’ digital assets.
EDX Markets will only offer trading services for Bitcoin, Ether, Bitcoin Cash, and Litecoin. It also intends to establish a clearinghouse to facilitate the settlement of transactions.
Jamil Nazarali, chief executive officer of EDX, stated:
“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.”
In addition, EDX Markets concluded a second round of financing with investors, including options-exchange operator Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading.
The Crypto Market Reacts to the Launch of Crypto Exchanges
The cryptocurrency community has mixed reactions to the introduction of EDX Markets. While some lauded the decision by traditional financial institutions to enter the cryptocurrency market, others pointed out that these institutions are now dominating the crypto market.
Bitcoin’s market dominance has reached 50%, putting pressure on altcoins as their prices continue to trade mostly sideways. In the past twenty-four hours, the price of Bitcoin has risen by approximately 2%, surpassing $26,800.
There it is.
Crypto Exchange EDX Markets Backed by Citadel Securities, Fidelity, Schwab Starts Operations
Drown the crypto native exchanges in lawsuits, generate fear around them, and then let the TardFi vultures swoop in.https://t.co/WT4kJ0mbk9 https://t.co/oEus0ZG49v
— Hsaka (@HsakaTrades) June 20, 2023