The cryptocurrency market has been witnessing new developments and launches, one of which is the much-anticipated launch of EDX Markets. This digital asset market is backed by major names like Fidelity Digital Assets, Charles Schwab, and Citadel Securities. After spending nine months building its technology, EDX Markets is ready to bring the values and standards investors expect to the crypto space, such as competition, transparency, fairness, and safety.
EDX Markets has garnered attention since September when it revealed that it had secured investments from well-established firms like Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel. The company has since raised additional capital, with names such as Miami International Holdings, DV Crypto, and GTS participating in the recent investment round.
A unique feature of EDX Markets is that unlike other cryptocurrency exchanges, it does not custody its customers’ digital assets. Users are required to rely on financial intermediaries to trade crypto assets, which is an approach similar to trading on the New York Stock Exchange (NYSE) or the Nasdaq (NASDAQ). This separation between the exchange function and the broker-dealer function appeals to regulators.
As investors increasingly turn to trusted intermediaries to conduct their trades, many are reevaluating the trustworthiness of FTX as a leader in the digital market space. EDX Markets is positioning itself as an alternative platform that has the backing of experienced financial firms.
Later this year, EDX Clearing will be launched to settle trades matched on EDX Markets. However, the current regulatory environment in the US has led the exchange to offer only a limited selection of tokens – bitcoin (BTC), ethereum (ETH), litecoin (LITE), and Bitcoin Cash (BCH). The company is cautious not to trade any potential securities until there is greater regulatory clarity.
While an international expansion may be considered in the future, EDX Markets is currently focusing on its operations within the United States. The goal is to address existing problems within the cryptocurrency marketplace and offer investors a secure and transparent platform for trading.
In conclusion, the launch of EDX Markets is a significant milestone for the cryptocurrency industry as it brings together traditional finance firms and blockchain technology. It highlights the growing importance of a reliable, transparent, and fair ecosystem for digital asset trading. Although the limited token offerings and the decision to focus solely on the US market might be seen as a drawback, the cautious approach taken by EDX Markets indicates the exchange’s commitment to regulatory compliance and long-term success. Time will tell whether EDX Markets can truly succeed in bridging the gap between the vast world of traditional finance and the rapidly evolving digital asset space.
Source: Coindesk
