The announcement indicates the new digital asset exchange will allow “safe and compliant trading of digital assets through trusted intermediaries” and features, for now, Bitcoin, Ethereum, Litecoin and Bitcoin Cash on its platform.
“EDX’s ability to attract new investors and partners in the face of sector headwinds demonstrates the strength of our platform and the demand for a safe and compliant cryptocurrency market,” says Jamil Nazarali, CEO of EDX in a statement. “We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices.”
The platform will be backed by founding investors that include Charles Schwab, Fidelity Digital Assets, Citadel Securities, Sequoia Capital, Paradigm and Virtu Financial.
"BREAKING: Citadel, Fidelity and Charles Schwab to launch new crypto exchange platform, EDX Markets."
Just a week ago, the SEC sued Binance and Coinbase, two of the world’s largest crypto exchanges. The next few months are going to be really interesting for crypto investors. Additionally, other investors like Miami International Holdings, GTS, DV Crypto, LTD, GSR Markets and HRT Technology also participated in a recent funding round to support the exchange’s operations, per the announcement.
“With the endorsement of our new and growing list of investors and customers, we’re proud to launch trading and look forward to further enhancements to our offering. Looking ahead, EDX Clearing will be a major differentiator for EDX–and resolve an unmet need in the market–by enhancing competition and creating unparalleled operational efficiency through a single settlement process,” Nazarali added.
EDX Clearing, which is expected to go live later this year, aims to improve price competition, reduce risk and boost operational efficiency by trading against a centralized counterparty, according to the exchange.
"Fidelity, BlackRock, Deutsche Bank and now EDX Markets.. don’t be blindsided by narratives that’s superficial.. focus on what’s actually going on behind the scenes too."
The EDX launch comes in the wake of recent Securities and Exchange Commission lawsuits against crypto exchanges Binance and Coinbase as the regulatory agency continues its crusade to rein in the industry. It also took emergency action to provide relief to Binance users through an asset repatriation program directed at defendants Binance Holdings Limited, BAM Trading Services Inc., BAM Management US Holdings Inc. and Changpeng Zhao.
This will allow users to withdraw their assets, should they want to, by ensuring they remain protected on the platform.
“Given that Changpeng Zhao and Binance have control of the platforms’ customers’ assets and have been able to commingle customer assets or divert customer assets as they please, as we have alleged, these prohibitions are essential to protecting investor assets,” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement. “Further, we ensured that U.S. customers will be able to withdraw their assets from the platform while we work to resolve the alleged underlying misconduct and hold Zhao and the Binance entities accountable for their alleged securities law violations.”