EDX Markets, a trading platform backed by Wall Street, is here! Institution-only, unmanaged model

Organized by: Felix, PANews

On June 20th, the Wall Street Journal reported that EDX Markets (EDXM), a new cryptocurrency exchange backed by Wall Street giants such as Citadel Securities, Fidelity Investments, and Charles Schwab, has begun to execute transactions in recent weeks and is now officially Announced the launch of a trading service that will offer trading in four cryptocurrencies, including Bitcoin, Ethereum, Litecoin and Bitcoin Cash (these assets are not considered securities by the SEC).

In addition, EDX Markets announced the completion of a new round of financing. Investors include Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology, Charles Schwab, Citadel Securities, Fidelity Digital Assets SM, Paradigm, Sequoia Capital and Virtu Financial. The new funds will support EDX in continuing to develop its trading platform.

In fact, EDX Markets, an institutional-only exchange that does not directly handle clients’ digital assets or directly serve individual investors, debuted last September. Unlike existing crypto trading platforms such as Binance and Coinbase, EDX Markets draws on traditional financial standards, and similar to trading stocks and options, EDX Markets will allow investors to buy and sell digital assets through existing broker-dealers rather than through external venues Or buy and sell directly through cryptocurrency-native exchanges. EDX Markets will operate as a “non-custodial” exchange that does not hold customers’ digital assets during trading, and will provide API-based access to trades rather than a traditional front-end user interface. The non-custodial approach is designed to allay concerns about security and potential misuse of client funds, avoiding conflicts of interest.

Instead, EDX Markets will provide a platform on which institutions can execute transactions between cryptocurrencies and fiat currencies. EDX Markets CEO Jamil Nazarali said EDX is working with third-party custodians. Intended to utilize third-party banks and cryptocurrency custodians to hold client assets. And will launch EDX Clearing later this year to clear trades matched on EDX Markets. The move could reshape the digital asset landscape amid heightened U.S. scrutiny of the industry.

“We are taking some of the best features of traditional finance and bringing them to the digital marketplace to create efficiencies and cost savings for investors,” Nazarali said.

Regarding the team, it is understood that Jamil Nazarali, CEO of EDX Markets, used to be the global business development director of Citadel Securities. David Forman is the former Chief Legal Officer of Fidelity Brokerage Services and currently the General Counsel of EDX. The exchange’s chief technology officer, Tony Acuña-Rohter, was formerly chief technology officer of ErisX, which is now part of Cboe Global Markets.

The technical development of EDX Markets is provided by MEMX. It is reported that MEMX (Members Exchange) is a stock exchange established by mainstream Wall Street banks, electronic trading companies and asset management giants, and it is also the youngest stock exchange in the United States.

Nazarali said EDX’s system, which will be housed in a data center in Secaucus, New Jersey, uses software that ensures transactions are processed in the order they were sent. This type of order processing and management is different from how most cryptocurrency exchanges operate, Nazarali said.

Regarding the number of tokens listed, Nazarali said. “We have a limited number of tokens because we don’t want to trade something that could be a security until there is more clarity on regulation.”

When the U.S. SEC sued Binance and Coinbase and listed many tokens such as SOL as securities, whether the exchange EDX Markets, which is endorsed by traditional Wall Street giants and has entered the market with a high profile, has released a regulatory signal, and whether the encryption industry has since moved to the traditional field , let’s wait and see.

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