Decoding EDX’s ambition: To become the Nasdaq of the crypto industry

EDX aims to become the Nasdaq of crypto.

EDX Markets, a cryptocurrency exchange established by several US trade giants and brokerage firms, announced today that it has completed a new round of financing and launched trading services. Ram Ahluwalia, CEO of cryptocurrency asset management company Lumida Wealth Management, analyzed the characteristics of EDX and believes that its efforts in compliance demonstrate its ambition to become a “national securities exchange” like Nasdaq.

EDX Markets is a non-custodial cryptocurrency exchange launched in 2022. Since its inception, EDX has supported trading of BTC, ETH, LTC, and BCH. Why these four tokens? They are the least likely to be considered securities.

The non-custodial aspect of EDX refers to its settlement process. EDX plans to use third-party banks and cryptocurrency custodians to hold customer assets. The actual exchange of assets occurs directly between the relevant companies. These transactions are settled through cryptocurrency and cash transfers between the companies. EDX plans to introduce a clearinghouse later this year to simplify settlements.

EDX avoids serving retail investors directly. Instead, EDX caters to institutional needs by providing API-based trading access rather than a traditional front-end user interface. EDX may aspire to develop into a regulated ATS and eventually become a “national securities exchange.” This is good news for the cryptocurrency market.