EDX Markets, The New Bitcoin Exchange Backed By Major Wall Street Firms: WJS

Key Points:

• EDX Markets offers trading in four cryptocurrencies, including bitcoin and ether.
• EDX Markets is backed by Citadel Securities, Fidelity Investments, and Charles Schwab.

EDX Markets, a new “noncustodial” exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, has launched. It offers trading in 4 cryptocurrencies including Bitcoin, Ether, Litecoin, and Bitcoin cash.

The exchange will offer trading in just four cryptocurrencies, including Bitcoin, Ether, Litecoin, and Bitcoin cash, none of which have been identified as securities by the SEC. Such a conservative approach to listing cryptocurrencies could help EDX stay out of trouble with the SEC, which has sued Coinbase Global and other crypto exchanges for listing coins that the agency deems to be securities. Coinbase has disputed the agency’s categorization of cryptocurrencies as securities and vowed to fight back in court.

EDX is a “noncustodial” exchange, meaning it doesn’t directly handle digital assets. Instead, EDX runs a marketplace where firms agree to execute trades of coins and dollars, using its platform to agree on prices. Then the firms move crypto and cash between each other to settle the trades.

The launch of EDX Markets shows that some Wall Street firms remain interested in crypto despite a regulatory onslaught by the Securities and Exchange Commission and a market that has cooled off substantially over the past 18 months. Citadel Securities, an electronic market-making firm with a huge presence in stocks and options, confirmed it was trading cryptocurrencies on EDX. Citadel Securities’ billionaire founder Ken Griffin was earlier a very public critic of crypto.

EDX’s backers include electronic trading firms Virtu Financial, Sequoia Capital, and Paradigm. In addition, EDX has attracted investment from options-exchange operator Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading. Both Citadel Securities and GTS are market-makers on the NYSE, and Citadel’s founder, Ken Griffin, made his fortune in traditional markets and was publicly hostile to crypto as recently as a year and a half ago.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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