Fidelity, Citadel, Schwab Backs EDX Markets’ Crypto Exchange Launch

• The launch of EDX Markets received attention from both crypto market and traditional financial firms.
• Simultaneously, BlackRock iShares filing of a spot Bitcoin ETF sparked positive sentiments in the industry.
• EDX Markets operates as a non-custodial exchange, facilitating trade prices while assets are settled externally.

According to the latest reports, on June 20,  the non-custodial cryptocurrency exchange EDX Markets announced its highly-anticipated launch. This event garnered attention from the crypto market, as it coincided with the entry of several traditional financial services firms into the crypto space.

This is the second news that has managed to reignite positive sentiments within the industry. Earlier, the recent filing of a spot Bitcoin ETF by BlackRock iShares with the US SEC observed an enthusiastic reaction.

EDX Markets-backed by market leaders including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial silently began executing trades in recent weeks.

Despite EDX Markets actively seeking business from brokers and investors engaged in crypto assets, the platform maintains a level of apprehension due to the increased scrutiny from US regulators, particularly in light of recent issues faced by FTX and Binance. Nonetheless, Wall Street firms continue to display interest in the crypto industry, despite ongoing regulatory crackdowns led by the US Securities and Exchange Commission (SEC).

As per WSJ reports, EDX Markets distinguishes itself from conventional exchanges by operating as a “noncustodial” entity. This distinctive approach implies that the exchange does not directly manage its customers’ assets. Instead, it serves as a platform where participating firms utilize EDX to establish trade prices. The actual transfer of crypto assets and cash between these firms is carried out to settle the trades. Furthermore, EDX CEO Jamil Nazarali 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.

Additionally, EDX Markets will exclusively offer trading services for Bitcoin, Ether, Bitcoin Cash, and Litecoin. However, in the future, the exchange has plans to introduce a clearinghouse that will streamline the settlement process for users.