EDX Markets: what it is and how it works

EDX Markets is the new crypto exchange platform that has gained significant support from Wall Street giants, including Citadel Securities, Fidelity Investments, and Charles Schwab. 

Let’s see below all the details 

EDX Markets: what it is and how it works

Officially launched on 20 June, EDX Markets aims to be a trusted marketplace for cryptocurrency trading, offering a number of unique advantages. 

These include high liquidity, competitive quotes, and a non-custodial model that aims to reduce conflicts of interest.

Moreover, despite being a new platform in the cryptocurrency exchange landscape, the participation of such prestigious investors helps solidify its reputation and reliability. 

Indeed, EDX Markets places great emphasis on security and is actively working to introduce the best practices of the traditional financial sector into the cryptocurrency market.

EDX Markets has also introduced a listing dedicated exclusively to the retail market, offering participants the opportunity to obtain better prices for retail orders. 

The operation of this platform is based on a set of clear and well-defined rules that ensure efficiency and transparency. 

In terms of membership, EDX Markets welcomes firms and institutions that have the necessary registrations and licenses and meet the financial, credit and related requirements stability and maintained by the Exchange. 

There are some restrictions to membership, such as lack of demonstration by the Exchange of the capacity, integrity or security of the system, or failure to comply with any agreement with the Exchange.

One of the advantages of EDX Markets is that it offers 24/7 trading, allowing continuous operations. However, the Exchange reserves the right to temporarily suspend trading for maintenance or system upgrades.

In conclusion, EDX Markets appears to be an ideal option for institutional and retail investors seeking a secure, efficient, and regulated cryptocurrency exchange platform.

Which crypto assets are currently supported by EDX Markets?

EDX Markets currently offers support for only four crypto assets, namely: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).

In the future, EDX has already anticipated that it will launch EDX Clearing, a clearing system designed to settle transactions made on EDX Markets. 

This system will allow transactions to be processed through a central counterparty, offering participants greater benefits in terms of price competitiveness and reduced settlement risks, while improving operational efficiency.

We also emphasize that the launch of EDX and the announcement of EDX Clearing come at a time when the company has just completed a new round of financing, with the entry of additional strategic investors, including Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology. 

These companies join the consortium of founding investors, which includes, as anticipated, Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital and Virtu Financial. 

The new financing will provide support for EDX as it continues to develop its trading platform and consolidate its leadership position in the market.

Finally, we see that the launch of EDX Markets comes at a time when the Securities and Exchange Commission (SEC) is intensifying regulations, which underscores the importance for investors to maintain their resolve in their interest in cryptocurrencies.

In addition, during the same period, investment management firm BlackRock also recently took a significant step toward adopting the cryptocurrency world. 

In fact, on 15 June, the company filed an application for the first Bitcoin exchange-traded fund (ETF) in the United States. 

If it gains regulatory approval, this ETF will offer investors a regulated and affordable opportunity to gain exposure to Bitcoin.

Large financial institutions support crypto as the SEC tightens regulations 

CEO of EDX Markets, Jamil Nazarali, in regards to the launch of the new exchange emphasized the company’s commitment to bringing the best of traditional finance to the cryptocurrency markets, with an infrastructure built by market experts to integrate institutional best practices. 

Nazarali therefore believes that EDX Clearing will be a great differentiator for EDX, solving an unmet need in the market through a unified settlement process: 

“EDX’s ability to attract new investors and partners in the face of industry headwinds demonstrates the strength of our platform and the demand for a secure and compliant cryptocurrency market.

With the approval of our new and growing roster of investors and clients, we are proud to launch trading and look forward to further improvements to our offering.

Looking forward, EDX Clearing will be a major differentiator for EDX and will address an unmet market need, strengthen competition and create unmatched operational efficiencies through a single clearing process.”

Furthermore, the fact that top financial institutions such as Charles Schwab, Fidelity Investments, and Citadel Securities support EDX Markets indicates that these institutions see real value in the cryptocurrency industry and are willing to invest significant resources to support its growth and development.

Overall, despite the SEC’s regulatory challenges, the launch of EDX Markets highlights the resilience of the cryptocurrency industry and the continued confidence from investors.

The SEC’s legal action against crypto: some details 

Recently, members of the US House Financial Services Committee met to discuss the importance of clarity in the digital asset ecosystem. 

In particular, some of them raised concerns about legal actions taken by the Securities and Exchange Commission ( SEC) against cryptocurrency companies.

During a committee hearing held on 13 June, Representative Maxine Waters said that Democrats are taking a hard look at a regulatory framework proposed by Republicans for digital assets. 

Committee Chairman Patrick McHenry said he expects bipartisan collaboration in drafting a bill, with plans to move it forward after Congress recesses in July.

Waters suggested that without thorough analysis and collaboration among political parties, digital asset legislation could leave room for potential fraud and misuse of customer funds. 

He then cited as examples the collapse of FTX, the criminal charges brought against former CEO of FTX, Sam Bankman-Fried, and the recent actions taken by the SEC against Binance and Coinbase. 

Finally, it is worth mentioning that a bill was introduced on 2 June that proposes to prohibit the SEC from denying digital asset trading platforms registration as a regulated alternative trading system. 

It would also allow these companies to offer “digital consumer goods and payment stablecoins.” 

The bill also aims to restructure the roles of the SEC and the Commodity Futures Trading Commission in the regulation of digital assets in the United States.