Tuesday marked a significant milestone for EDX Markets, as the new crypto exchange, supported by esteemed Wall Street entities such as Charles Schwab and Citadel Securities, successfully conducted its first trades.
This development signifies that certain institutions still embrace cryptocurrencies, even in the face of recent regulatory challenges in the United States.
Furthermore, the introduction of EDX Markets brings a fresh infusion of capital, including investments from various entities like Miami International Holdings, DV Crypto, and GTS, among others.
New Crypto Exchange Launches Despite Tense Crypto Atmosphere
In recent years, the crypto space has come under increased scrutiny from regulatory bodies, with the U.S. Securities and Exchange Commission (SEC) taking the lead.
The SEC has filed several lawsuits against crypto companies, alleging violations of securities laws.
However, despite these legal challenges, institutions continue to display a strong interest in the crypto space, as evidenced by the recent successful launch of a new Citadel-backed crypto exchange.
This serves as a testament to digital assets’ enduring appeal and long-term potential.
EDX Markets recently conducted its inaugural trade, marking an important milestone for the platform. In addition, the exchange concluded a successful investment round, securing new equity partners to support its growth and development.
EDXM launches today. Will allow trading of Bitcoin, Bitcoin Cash, Ethereum last but not least LITECOIN https://t.co/qhtb20nZhm
— Shan Belew Ⓜ️ (@MASTERBTCLTC) June 20, 2023
The platform has attracted investments from popular traditional finance firms like Fidelity, Schwab, Citadel, Paradigm, and Sequoia Capital.
By incorporating proven practices from traditional finance, EDX offers customers distinct advantages, including liquidity, competitive quotes, and a unique non-custodial model designed to address conflicts of interest.
Additionally, the exchange has introduced a retail-only quote to the crypto markets, affording participants the benefit of improved pricing for orders from retail investors.
Traders on the platform can access a wide range of products for trading, including popular cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
— Miles Deutscher (@milesdeutscher) June 21, 2023
The firm has also announced the upcoming launch of EDX Clearing, a clearinghouse designed to handle the settlement of trades on the platform in the coming months.
By leveraging a central counterparty, this clearinghouse will facilitate trades and provide participants with several advantages, including heightened price competition, reduced settlement risks, and improved operational efficiencies.
EDX Markets Is Building Trust and Legitimacy
The involvement of renowned financial institutions such as Fidelity Investments, Charles Schwab, and Citadel brings a significant level of trust and legitimacy to EDX Markets.
Furthermore, the exchange has attracted a diverse range of new investors eager to participate in the rapidly growing crypto market.
EDX Markets CEO, Jamil Nazarali, expressed his delight on LinkedIn about the successful launch of the digital asset market and the conclusion of an investment round that involved new equity partners.
This diversified investor base includes other financial institutions, venture capital firms, and prominent individuals.
Alongside the recent launch, EDX also announced the introduction of EDX Clearing following a successful new funding round.
Strategic investors, including Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology, have joined the coalition of founding investors, providing additional funding to enhance the trading platform and solidify EDX’s position as a market leader.
One distinguishing factor that sets EDX Markets apart from other crypto exchanges is its non-custodial approach to customers’ digital assets.
Instead, users are required to utilize financial intermediaries to buy and sell crypto assets, similar to the trading processes on established stock exchanges like the New York Stock Exchange (NYSE) or the Nasdaq (NASDAQ).
Nazarali acknowledged in an interview with Coindesk in April 2023 that institutional investors desire access to crypto markets through methods that mirror established financial practices.
— Emotional (@emotional_ost) June 20, 2023
The participation of these new investors further amplifies the credibility and potential of the crypto exchange.
Enhancing Market Accessibility
EDX’s initial trades occurred shortly after BlackRock, the world’s largest asset manager, revealed its plans to establish the first Bitcoin exchange-traded fund (ETF) in the United States.
BlackRock filed for spot #BitcoinETF and boom
Citadel, Fidelity, and Charles Schwab launch new #crypto exchange platform, EDX Markets.
— Enryvanie (@Canaryzodiac) June 21, 2023
Amidst the tightening regulations imposed by the SEC on prominent industry players such as Binance and Coinbase, EDX appears well-prepared to support Wall Street in navigating the unpredictable crypto terrain.
Many crypto commentators, including MicroStrategy’s founder and Executive Chairman, Michael Saylor, believe that Wall Street is making a concerted push.
— Michael Saylor⚡️ (@saylor) June 20, 2023
Saylor expressed this sentiment in a tweet, stating that “the window to front-run institutional demand for Bitcoin is closing.”
David Schwed, the Chief Operating Officer at Halborn Security, highlighted that EDX had established the necessary infrastructure for Wall Street banks to enter the cryptocurrency market.
Schwed explained in a Decrypt report that EDX is focused on building the essential plumbing, middleware, and technology required to offer these services.
This strategic move is crucial as it provides a solid foundation for entities venturing into the regulated side of the cryptocurrency space.
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