- EDX Markets, a new crypto exchange backed by Fidelity Digital Assets, Charles Schwab, and Citadel Securities, has officially launched in the U.S.
- The exchange offers a unique business model where it doesn’t custody customers’ digital assets, instead, trades are executed through financial intermediaries.
EDX Markets, a cryptocurrency exchange backed by industry heavyweights such as Fidelity Digital Assets, Charles Schwab, and Citadel Securities, has officially launched its operations in the United States. This announcement comes after nine months of technology development and strategic planning.
Jamil Nazarali, CEO of EDX Markets, expressed his excitement about the launch on LinkedIn, stating, “EDX’s official launch allows our outstanding team to bring to crypto the same values and standards of competition, transparency, fairness, and safety that investors in traditional assets expect and enjoy.”
EDX Markets made waves in the financial world when it announced its inception in September, with significant investments from traditional finance firms like Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel. The launch of the digital asset market also saw a new round of capital injection from Miami International Holdings, DV Crypto, and GTS, among others.
What sets EDX Markets apart from other cryptocurrency exchanges is its unique business model. Unlike most exchanges, EDX Markets does not custody customers’ digital assets. Instead, users execute trades through financial intermediaries, similar to the process on traditional exchanges like the New York Stock Exchange (NYSE) or the Nasdaq. This approach has been well-received by regulators, who appreciate the separation between the exchange function and the broker-dealer function.
“What we’re seeing is that increasingly, investors want to trade through their trusted intermediaries. So people are falling back on the firms that have been around for a really long time and that have really stood the test of time and that’s a really important tailwind for us.”
– Jamil Nazarali, CEO of EDX.
Currently, EDX Markets offers only four tokens – Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. The limited selection is due to the unclear regulatory landscape in the U.S. Nazarali stated, “We have a limited set of tokens because until there is more regulatory clarity, we don’t want to trade something that’s potentially a security.”
While EDX Markets has plans for international expansion in the future, its current focus is on solidifying its operations in the U.S. The company also plans to launch EDX Clearing later this year to settle trades matched on EDX Markets.
The launch of EDX Markets signifies a new era in the crypto trading landscape, combining the reliability of traditional finance with the innovation of the crypto world. As the platform continues to grow and evolve, it will undoubtedly play a significant role in shaping the future of digital asset trading.
