EDX Markets Who Is It Backed By?
EDX Markets has commenced its operations as a crypto exchange supported by leading financial institutions, including Charles Schwab, Fidelity Digital Assets, and Citadel Securities. The company announced on Tuesday that it has officially started facilitating transactions involving four crypto assets, namely Bitcoin and Ethereum.
EDX Markets had previously announced its plans to operate as a “non-custodial” exchange in September, a couple of months before the collapse of FTX. Prominent backers, such as Paradigm, Sequoia Capital, and Virtu Financial, also supported the launch initiative.
The recent announcement demonstrates that long-term institutional interest in the crypto industry remains strong, despite past setbacks caused by FTX and other malicious actors. Furthermore, it indicates that EDX’s decision to continue its services reflects the ongoing trust of institutional investors in the crypto space, despite concerns raised by US regulators this year.
The EDX exchange provides an opportunity to trade popular crypto assets, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Notably, these assets were not categorized as “crypto asset securities” in the recent lawsuits filed by the US Securities and Exchange Commission against Binance and Coinbase.
EDX aims to meet the needs of the world’s largest and most sophisticated financial institutions. These institutions, while remaining skeptical of centralized crypto service providers due to past failures in 2022 and regulatory uncertainties, continue to show interest in the crypto sector.
To address concerns related to fund misuse, EDX will operate as a “non-custodial” exchange, allowing a network of firms to execute and settle trades between crypto assets and fiat currencies, rather than directly handling customer assets. To ensure security, customer assets will be held by third-party banks and a crypto custodian.
In addition, EDX has successfully completed a second funding round with new investors, including Miami International Holdings (the operator of an options exchange) and affiliates of proprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading. This additional investment highlights EDX’s commitment to growth and improving service quality.
The successful launch of EDX Crypto Exchange showcases the sustained interest of institutional investors in crypto assets and contributes to the growth of the industry. Supported by industry giants Schwab and Fidelity, EDX establishes itself as a reliable platform, pioneering a new era in the world of cryptocurrencies.