Crypto exchange EDX Markets, backed by well-established broker-dealers, global market makers, and venture capital firms, has announced its launch. This news comes as several traditional financial services firms have shown interest in entering the crypto space, with BlackRock iShares filing for a spot Bitcoin ETF with the US SEC last week, reviving positive sentiments in the industry.
EDX Markets, supported by market leaders such as Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital, and Virtu Financial, quietly began executing trades in recent weeks. The platform aims to attract brokers and investors intrigued by crypto assets but acknowledges the growing scrutiny from US regulators following issues with FTX and Binance. Nonetheless, Wall Street firms remain interested in cryptocurrencies, despite regulatory crackdowns led by the US Securities and Exchange Commission (SEC).
Distinguishing itself from other platforms, EDX Markets is the first-of-its-kind exchange that aims to address the demand for digital asset trading in a safe and compliant manner. It offers trading services for select cryptocurrencies, including Bitcoin, Ether, Bitcoin Cash, and Litecoin, through trusted intermediaries. EDX Markets operates as a “noncustodial” exchange, meaning it doesn’t directly handle its customers’ digital assets. Additionally, the platform plans to launch a clearinghouse to facilitate trade settlement.
Recently, EDX Markets completed a second funding round, which attracted participants such as options-exchange operator Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading.
While the entrance of traditional financial industry players into the crypto ecosystem is a seemingly positive development, skeptics argue that it could bring potential risks into the highly volatile digital asset market space. Increased involvement from these entities could lead to an even greater focus on regulatory compliance, which may limit the growth potential of the cryptocurrency industry. Moreover, the noncustodial nature of the exchange, while providing distinct advantages, may not appeal to all investors, as they may prefer platforms that directly handle their digital assets.
In conclusion, the launch of EDX Markets signifies a significant step towards broader adoption and integration of cryptocurrencies into the traditional financial system. As Wall Street firms begin to embrace digital assets, it remains to be seen how this new dynamic will shape the crypto market landscape, considering the potential benefits and risks posed by such involvement.
The content provided in this article may include personal opinions of the author and is subject to market conditions. It is essential to do your market research before investing in cryptocurrencies. The author or the publication holds no responsibility for your personal financial loss.
Source: Coingape
