What are the features of EDX Markets, backed by the “strongest lineup” of Fidelity, J.P. Morgan, and Sequoia?
What are EDX Markets' key features with support from Fidelity, J.P. Morgan, and Sequoia?
Another significant event that marks the entry of traditional power into the game.
The crypto world is presenting a magical and differentiating scene.
On the one hand, native crypto institutions such as Binance and Coinbase are facing the crazy crackdown of regulatory agencies such as the US Securities and Exchange Commission (SEC). On the other hand, the traditional financial world seems to be accelerating its entry into the game. It started with BlackRock actively applying for BTC spot ETFs, and later there were rumors that Fidelity was considering acquiring Grayscale.
And just last night, an exchange named EDX Markets successively announced two important dynamics, the upcoming launch and the completion of financing. Due to the endorsements of the institutions behind the exchange being too dazzling, its attention was directly increased with the spread of relevant announcements, and many industry insiders regarded this as another landmark event of traditional power entering the game.
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The name EDX Markets first entered the public’s field of vision in September last year when Charles Schwab, Citadel Securities, Fidelity Investments, Sequoia Capital, and Block Influence announced that they would jointly launch EDX Markets.
Regarding the core leadership, Jamil Nazarali, the former global business development director of Citadel Securities, will serve as CEO of EDX Markets, while the CTO and general counsel will be Tony Acuña-Rohter, former CTO of ErisX, and David Forman, former general counsel of Fidelity Digital Assets, respectively.
Last night, EDX Markets officially announced the launch of its digital asset market, which will provide trading services for four cryptocurrencies: BTC, ETH, LTC, and BCH – it is worth noting that none of the four cryptocurrencies have been recognized by the SEC as securities.
At the same time, EDX Markets also announced that it has completed a new round of financing, with participation from Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology. The new funds raised in this round of financing will be used to support EDX Markets to continue to develop its trading platform and consolidate its market leadership position.
According to the official description, EDX Markets aims to “realize safe and compliant digital asset transactions through trusted intermediaries.”
Unlike native crypto exchanges like Binance and Coinbase, EDX Markets provides services more geared towards institutional clients, offering API-based trading access rather than a traditional frontend user interface. In terms of operations, the biggest difference with EDX Markets is that the exchange does not directly hold client funds, instead managing client funds through third-party banks and professional custody service providers. Fund transfers do not go through EDX Markets, but are only completed between the relevant service providers.
Under this mechanism, EDX Markets primarily needs to handle order matching between buy and sell orders. According to previously disclosed development plans, EDX Markets will launch the settlement system EDX Clearing later this year, aimed at providing clients with better pricing and higher processing efficiency, but this will not affect EDX Markets’ “non-custodial” basic operating model.
According to Ram Ahluwalia, CEO of Lumida Wealth Management, the “non-custodial” model of EDX Markets is relatively better suited to current regulatory compliance requirements for cryptocurrency service providers, minimizing conflicts of interest and preventing asset abuse. The model is expected to avoid tragedies that have occurred on FTX and Celsius, thus minimizing conflicts of interest and preventing asset abuse.
Ram added that although there is currently no information on EDX Markets seeking to operate as an Alternative Trading System (ATS), it is expected that the exchange plans to become a compliant ATS and eventually become a “national-level exchange” similar to Nasdaq or NYSE.
All in all, EDX Markets, backed by multiple traditional financial giants, tells a completely different narrative from Binance and Coinbase, and whether it can stand firm in the crypto world and even bring more funds and liquidity to this emerging market remains unknown.
But regardless, the emergence of EDX Markets once again proves the appeal of crypto, which is naturally bullish for the industry’s development. This morning, BTC briefly rose above $29,000, a positive feedback on current market sentiment.
The slogan of “traditional forces entering the game” has been chanted for so many years, perhaps it is time to accelerate.