EDX Markets (EDX), a new cryptocurrency exchange, has recently launched in the United States with the support of major financial firms such as Fidelity Digital Assets, Charles Schwab, and Citadel Securities. Unlike other crypto exchanges, EDX Markets has a unique business model that has garnered positive attention from regulators. The exchange aims to bring the same level of competition, transparency, fairness, and safety to the crypto market that investors in traditional assets have come to expect.
After nine months of building and refining its technology, EDX Markets announced the successful launch of its digital asset market. The CEO, Jamil Nazarali, expressed his pride in the achievement and highlighted the addition of new equity partners in an investment round. The exchange’s official launch signifies its commitment to delivering a trustworthy and reliable platform for crypto trading.
EDX Markets first made headlines in September when it revealed its creation, attracting investments from prominent traditional finance firms such as Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel. Nazarali, who previously worked at Citadel, played a pivotal role in securing the support of these influential backers. The recent launch of the digital asset market has also attracted additional investments from companies like Miami International Holdings, DV Crypto, and GTS.
What sets EDX Markets apart from other crypto exchanges is its approach to custody. Unlike traditional exchanges, EDX does not hold customers’ digital assets directly. Instead, users are required to transact through financial intermediaries, similar to how trades are executed on the New York Stock Exchange (NYSE) or the Nasdaq. Regulators favor this separation between the exchange function and the broker dealer function, considering it an important aspect of investor protection.
According to Nazarali, the preference for trusted intermediaries has grown stronger among investors, especially following recent concerns about the credibility of some digital market leaders. EDX Markets aims to fill this trust gap by leveraging the reputation and reliability of long-established firms. The company believes that investors seek the stability and dependability offered by institutions that have withstood the test of time.
EDX Markets plans to introduce EDX Clearing later this year to facilitate the settlement of trades made on the platform. Currently, the exchange offers a limited selection of four tokens: bitcoin (BTC), ethereum (ETH), litecoin (LITE), and Bitcoin Cash (BCH). This cautious approach is due to the uncertain regulatory landscape in the U.S., as the company wants to avoid trading assets that may be classified as securities until there is more clarity from regulators.
While EDX Markets may consider international expansion in the future, the immediate focus is on its operations in the United States. The exchange was founded to address specific challenges in the U.S. market and aims to establish a strong presence by providing a secure and compliant trading environment.
With the backing of major financial institutions and its unique approach to custody, EDX Markets has positioned itself as a promising player in the cryptocurrency exchange landscape. By prioritizing investor trust and regulatory compliance, the exchange aims to bridge the gap between traditional finance and the crypto market, catering to the needs of both institutional and individual investors.
