Wall Street titans have backed EDX Markets, a new cryptocurrency exchange

By: Dickson Arinze

Wall Street titans have backed EDX Markets, a new cryptocurrency exchange

June 21, 2023 1:35 AM

Citadel Securities, Fidelity Investments, and Charles Schwab are among the significant financial firms who back EDX Markets.

EDX Markets, a newcomer to the cryptocurrency exchange sector, has made a significant debut with support from important financial organizations such as Citadel Securities, Fidelity Investments, and Charles Schwab. On June 20, the corporation announced the launch of its digital asset market, marking its official entry into the industry.

The exchange intends to attract "industry leaders" by adopting best practices from traditional finance and giving unique benefits such as liquidity, competitive quotes, and a noncustodial model designed to prevent conflicts of interest, according to the statement→. EDX now supports only four cryptocurrencies for trading: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

EDX intends to launch EDX Clearing, a clearinghouse for trades performed on the EDX Markets platform, in the coming months. This system will allow trades to be executed with a central counterparty, providing participants with significant benefits such as greater pricing competitiveness, reduced settlement risks, and increased operational efficiencies. 

EDX recently completed a funding round that included strategic investors such as Miami International Holdings, DV Crypto, Global Trading Strategies, GSR Markets, and Hudson River Trading as part of its growth goal. These investors join a group that includes Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial. The company claims that it would use the fresh capital to strengthen EDX's market position by expanding the functionality of its trading platform.

The debut of the EDX Markets, which comes amid a Securities and Exchange Commission crackdown, demonstrates that investors remain committed to cryptocurrencies.

Similarly, financial behemoth BlackRock has taken an important step toward embracing the world of cryptocurrency. On June 15, the company filed for the first Bitcoin spot exchange-traded fund (ETF) in the US. If it receives regulatory clearance, this ETF will offer investors a safe and convenient way to obtain exposure to Bitcoin.