The launch of a new cryptocurrency exchange, EDX Markets, backed by Wall Street giants such as Charles Schwab, Citadel Securities, and Fidelity Digital Assets, indicates that some institutions are undeterred by the recent regulatory challenges surrounding the crypto industry in the U.S. The exchange, which completed its first trades on Tuesday, aims to fuse traditional finance elements with cryptocurrency while emphasizing compliance and minimizing conflicts of interest.
EDX Markets recently successfully closed a funding round, which included participants like GSR Markets and Miami International Holdings. In a statement, CEO Jamil Nazarali acknowledged that institutional investors are seeking access to the cryptocurrency market through methods that resemble established financial practices. “We are committed to bringing the best of traditional finance to cryptocurrency markets,” said Nazarali.
David Schwed, COO of Halborn Security, believes that EDX is setting up the necessary infrastructure for Wall Street banks to enter the cryptocurrency market. As the crypto industry develops more robust practices and a supportive ecosystem, the focus will be on providing essential technology and services that appeal to big financial institutions.
Notably, EDX Markets’ first trades followed just days after BlackRock, the world’s largest asset manager, revealed plans to establish the first U.S. spot Bitcoin ETF. Simultaneously, the Securities and Exchange Commission (SEC) has been cracking down on major industry players like Binance and Coinbase, adding to the sense that Wall Street is making a concerted effort to enter the crypto sphere.
However, unlike traditional cryptocurrency exchanges that offer a wide variety of digital currencies, EDX Markets currently lists only four coins: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Collectively, these tokens represent 67% of the total crypto market capitalization, according to CoinGecko. The limited selection is likely intentional, as the SEC Chair Gary Gensler has labeled “everything but Bitcoin” a security. Given the recent lawsuits against Binance and Coinbase involving various altcoins, EDX’s approach is a safer bet.
In conclusion, the EDX Markets exchange’s entry into cryptocurrency represents a significant milestone as the sector continues to mature, gain increased institutional interest, and address regulatory concerns. With Wall Street heavyweights backing the venture, it will be interesting to see how this new development impacts the crypto landscape and encourages further adoption within the traditional financial industry.
Source: Decrypt
