Collaboration between Fidelity, Schwab, Citadel, and Others Results in the Launch of a Robust Crypto Exchange, Providing Trading Options for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, Amidst a Significant Price Surge in the Crypto Market
EDX Markets, a cryptocurrency exchange backed by prominent financial institutions such as Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial, has successfully launched its digital asset market. The exchange provides trading services for four major cryptocurrencies, namely bitcoin (BTC), ethereum (ETH), litecoin (LTC), and bitcoin cash (BCH).
One of the key features of EDX is its unique non-custodial model, which aims to mitigate conflicts of interest. The platform has also introduced a retail-only quote to the crypto markets, offering participants better pricing for retail-originated orders. Additionally, EDX has plans to launch EDX Clearing later this year to facilitate the settlement of trades conducted on its platform.
In recent news, EDX Markets announced the completion of a funding round with the participation of new strategic investors. Miami International Holdings, DV Crypto, GTS, GSR Markets Ltd., and HRT Technology are among the new investors, joining the platform's existing founding investors. The founding investors include financial giants Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial. Reports about Schwab, Citadel, and Fidelity's intention to launch a cryptocurrency trading platform emerged in June of the previous year.
The launch of EDX Markets comes at a time when the U.S. Securities and Exchange Commission (SEC) is increasing its scrutiny of unregistered cryptocurrency trading platforms and securities tokens. Notably, the SEC has recently filed charges against Coinbase, a prominent crypto exchange listed on Nasdaq, for alleged securities law violations. SEC Chairman Gary Gensler has also expressed the view that most crypto tokens, except bitcoin, should be considered securities.
Despite the regulatory uncertainty, supporters of EDX Markets, as well as other industry participants, remain optimistic about the future of the U.S. crypto industry. BlackRock, the world's largest asset manager, recently filed an application with the SEC to launch a bitcoin trust, which could potentially pave the way for a bitcoin exchange-traded fund (ETF). Previous applications for a bitcoin ETF have been rejected by the SEC.
EDX Markets had initially announced its plans for a non-custodial exchange in September, prior to the collapse of FTX. The recent announcement coincides with BlackRock's application for a spot bitcoin ETF, indicating that institutional interest in the crypto industry remains strong despite challenges faced in previous years.
The EDX exchange enables trading of bitcoin, ether, litecoin, and bitcoin cash. Notably, these cryptocurrencies were not named as "crypto asset securities" in the recent lawsuits brought by the U.S. Securities and Exchange Commission against Binance and Coinbase.
EDX aims to cater to the needs of the world's largest and most sophisticated financial institutions. By operating as a non-custodial exchange, the platform acts as a facilitator for a network of firms to execute and settle trades between crypto assets and fiat currencies. To ensure the proper use of funds, customer assets will be held at third-party banks and a crypto custodian.
In addition to its successful launch, EDX Markets has closed a second funding round, attracting new investors such as Miami International Holdings and affiliates of DV Trading, GTS, GSR, and Hudson River Trading. This further strengthens the financial backing of the exchange.
In the midst of the launch of the new crypto exchange, Bitcoin, the leading cryptocurrency, experienced a remarkable surge in its price. Within a span of just 24 hours, the price of Bitcoin jumped an impressive 7%, reaching a milestone of $29,000. Currently, it is trading at $28,846, showcasing the dynamic and volatile nature of the crypto market. This surge in Bitcoin's price further highlights the growing interest and excitement surrounding cryptocurrencies, as investors and traders eagerly seize opportunities in this fast-paced digital asset landscape.
In conclusion, the launch of EDX Markets, supported by notable financial institutions, marks a significant development in the cryptocurrency industry. With its non-custodial approach and commitment to regulatory compliance, the exchange holds promise in the evolving crypto landscape.