- EDX Markets, backed by major traditional finance firms, launches its digital asset market and completes an investment round with new partners.
- The non-custodial nature of EDX Markets differentiates it from other crypto exchanges, providing a layer of separation between the exchange function and the broker dealer function.
In the fast-paced world of digital assets, a new name emerges – EDX Markets. This cryptocurrency exchange, backed by financial stalwarts such as Fidelity Digital Assets, Charles Schwab, and Citadel Securities, proudly announced its U.S. launch after nine months of technology development.
Jamil Nazarali, the CEO of EDX Markets, expressed his enthusiasm about the venture on LinkedIn, highlighting the exchange’s commitment to uphold the values of competition, transparency, fairness, and safety that investors in traditional assets have come to expect. The launch of EDX marks a significant achievement and a promising development in the intersection of traditional finance and digital assets.
The creation of EDX in September garnered attention, primarily due to the heavyweight investors backing it – Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel, with Nazarali himself being a former employee of the latter. The launch brings with it a fresh wave of capital, seeing investments from Miami International Holdings, DV Crypto, and GTS, among others.
Setting EDX apart from other crypto exchanges is its non-custodial approach, refusing to directly handle customers’ digital assets. Instead, financial intermediaries execute the purchase and sale of crypto assets, drawing parallels with trading on conventional platforms like the New York Stock Exchange or Nasdaq. Regulators, according to Nazarali, approve of this methodology, seeing merit in a distinct separation between exchange functions and broker dealer operations.
EDX’s approach is gaining traction as investors gravitate towards their trusted intermediaries, especially after recent mishaps with FTX, the once-proclaimed leader in the digital market. This trust in long-standing institutions provides a favorable tailwind for EDX.
The firm’s roadmap includes the launch of EDX Clearing later this year to facilitate the settlement of trades matched on EDX Markets. At present, the exchange offers only a limited set of tokens – bitcoin, ethereum, litecoin, and Bitcoin Cash – due to the uncertain regulatory landscape in the U.S. Nazarali has stated that until there’s more clarity from regulators, EDX will avoid trading in potential securities.
While international expansion is on EDX’s radar, the current focus is on solidifying operations in the U.S., which Nazarali cites as the key motivation behind EDX’s establishment. The entrance of EDX Markets into the cryptocurrency exchange scene signifies another step forward in the evolution and maturity of the digital asset market.
