EDX Marketsan exclusive crypto exchange for institutional investors, has launched with the backing of large financial players as citadel values, Loyalty digital assetsand Charles Schwab Corporation BLACK.
This development has the potential to transform the cryptocurrency sector, particularly at a time when US regulatory authorities are intensifying their scrutiny of the industry.
EDX Markets, which made its debut announcement in September 2022, has started trading on Bitcoin USD/BTC, Ethereal EUR/USD, Litecoin LTC/USDand bitcoin cash BCH/USD.
What sets EDX Markets apart from established crypto platforms like Coinbase Global Inc. CURRENCY and Binance Holdings Ltd USD/BNB it's their "non-custodial" model.
Jamil NazaraliCEO of EDX Markets, explained that the exchange does not store clients' cryptocurrencies during the trading process.
Instead, EDX has partnered with an independent custodian for this purpose.
Nazarali highlighted that regulatory authorities are interested in decoupling cryptocurrency exchanges from the activities of stockbrokers, reflecting the traditional structure of the financial market.
EDX sees this change as an opportunity.
โWe believe that cryptocurrencies are here to stay, but for them to evolve as an asset class, they need to embrace the rules and investor protections that exist in traditional finance,โ he said, adding: โThe message we get from our investors is that this creates an even bigger space for us.โ
Also read: Tokenization Could Unlock A $5 Trillion Market, Powered By Stablecoins And CBDCs: Bernstein Report
EDX Markets has obtained the support of prominent firms such as Paradigm, capital of the sequoiasand Virtu Financial Inc. Furthermore, the exchange has managed to raise additional funds from investors such as Miami International Participations, GTS, GSR Marketsand HRT technology.
EDX Markets has ambitions to launch EDX Clearing later this year for trade settlements.
The United States Securities and Exchange Commission (SEC) has recently expanded its crackdown on the cryptocurrency sector, filing lawsuits against industry giants Binance and Coinbase.
The SEC accuses these companies of operating as unregistered stock exchanges, broker-dealers, and clearinghouses. Both Binance and Coinbase have denied these allegations.
While institutional enthusiasm for investing in cryptocurrency has waned after market setbacks and the collapse of major companies like FTX FTT/USD In the past year, mainstream financial institutions have not been completely idle.
For example, Black Rock Inc. BLACKthe world's largest asset manager, recently filed filings to launch a spot Bitcoin exchange-traded fund.
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