Key Takeaways:
- EDX Markets, a non-custodial cryptocurrency exchange backed by top broker-dealers, global market makers, and venture capital organisations has officially launched.
- EDX will support four cryptocurrencies for trading: bitcoin, ether, litecoin, and bitcoin cash.
The world of cryptocurrency has been thriving in recent years, attracting the attention of both retail investors and institutional giants. In a significant development, three financial powerhousesāCitadel Securities, Fidelity Investments, and Charles Schwabāhave joined forces to launch a groundbreaking crypto exchange.
This collaboration is set to revolutionise the digital asset landscape and provide unprecedented opportunities for investors.
An entirely novel non-custodial cryptocurrency exchange called EDX has gone operational and is currently carrying out client orders. The Wall Street Journal reports that the business will officially disclose its operations later on Tuesday.
Some of the greatest names on Wall Street, like Citadel Securities, Fidelity, and Schwab, support the company EDX. While Citadel and Fidelity are significant players in the brokerage sector, Citadel Securities is the largest market maker in the United States.
The collaboration of these industry giants aims to democratize access to cryptocurrencies by enabling a broader spectrum of investors to participate. By leveraging Citadel Securities’ market-making capabilities and Fidelity Investments’ custody solutions, the exchange ensures enhanced liquidity, reducing bid-ask spreads and minimizing slippage.
Consequently, retail investors and institutions alike can benefit from improved execution and a more seamless trading experience.
EDX has taken a conservative approach, offering trading services for only four crypto currencies. Bitcoin [BTC], Ethereum [ETH], Litecoin [LTC], and Bitcoin Cash [BCH] are all examples. Notably, the US Securities and Exchange Commission [SEC] has not yet classed these crypto assets as securities. The exchange would avoid regulatory scrutiny by doing so.
EDX Markets actively seeks out brokers and investors interested in crypto assets, but it is still wary of increased regulatory scrutiny in the US following issues with Coinbase and Binance. Nevertheless, despite legal crackdowns spearheaded by the US Securities and Exchange Commission (SEC), Wall Street corporations continue to be interested in cryptocurrencies.
It is a first-of-its-kind exchange that will meet the latent demand for trading digital assets by facilitating secure and legal trade through reliable intermediaries. Because it is a “noncustodial” exchange that doesn’t handle its customers’ digital assets directly, it operates differently from how typical crypto exchanges do.
Instead, it will serve as a platform facilitating trades between cryptocurrencies and fiat currencies for companies.
