EDX Markets has gained the backing of significant financial organizations, including Citadel Securities, Fidelity Investments, and Charles Schwab.
EDX Markets, a fresh face in the crypto exchange scene, has made a strong impression with the support of high-profile financial firms such as Citadel Securities, Fidelity Investments, and Charles Schwab. The company recently announced the launch of its digital asset market on June 20, thereby officially stepping into the industry.
Per the announcement, the exchange aims to pull in “industry frontrunners” by leveraging tried and true practices from conventional finance, along with unique offerings such as enhanced liquidity, competitive quotes, and a noncustodial model built to lessen conflicts of interest. As it stands, EDX supports the trading of just four cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash.
In the near future, EDX has plans to roll out EDX Clearing, a clearinghouse intended to settle transactions carried out on the EDX Markets platform. This system will allow trades to be facilitated with a central counterparty, yielding significant benefits to participants such as increased price competition, reduced settlement risks, and enhanced operational efficiencies.
As a component of its expansion plans, EDX recently wrapped up a funding round that drew strategic investors like Miami International Holdings, DV Crypto, Global Trading Strategies, GSR Markets, and Hudson River Trading. These investors join the existing cohort of founding investors, which comprises Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial. The company states that the extra funding will be channelled into further enhancing EDX’s trading platform and reinforcing its market position.
The initiation of EDX Markets, in the midst of a regulatory clampdown by the Securities and Exchange Commission, suggests that investors are unshaken in their interest in cryptocurrencies.
In a related development, BlackRock, an investment management firm, has taken a momentous leap towards embracing the crypto world. On June 15, the firm lodged an application for the inaugural Bitcoin spot exchange-traded fund (ETF) in the United States. Upon receiving regulatory sanction, this ETF would offer investors a regulated and straightforward means to gain exposure to Bitcoin.
The launch of EDX Markets and the move by BlackRock suggest a continued momentum in the cryptocurrency sector despite ongoing regulatory uncertainties. This development is significant in indicating the increasing acceptance of cryptocurrencies by traditional financial institutions. Further, the unique offerings by EDX Markets, such as the noncustodial model and the upcoming clearinghouse, could introduce new standards for other exchanges to emulate. As more Wall Street giants back cryptocurrency initiatives, it reinforces the growing legitimacy and potential of the crypto market.