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Fidelity, Schwab, Citadel Securities Launch New Crypto Exchange EDXM

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Financial heavyweights, including Charles Schwab (SCHW), Citadel Securities, and Fidelity Investments, announced a launch of a new cryptocurrency exchange on Tuesday.

As per the report, the trio has collaborated on launching the cryptocurrency exchange called EDX Markets (EDXM).

The exchange is described to be a first-of-its-kind designed with a promise to offer safer, faster, and more efficient cryptocurrency trading. The exchange aims to eliminate expensive bilateral settlements by netting and settling trades through its blockchain network.

The EDXM’s trading platform will rely on the technology built by The Member Exchange (MEMX), a U.S. stock market owned by a group of financial firms, including some of EDX’s creators. This will enable the EDXM to scale its operation to serve retail and institutional investors in several markets.

The exchange will also be backed by ventures, including Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial.

Jamil Nazarali, the former global head of business development at Citadel Securities, is assigned to lead the EDXM exchange, serving as the CEO of the platform.

In a statement, EDX Markets’ board of directors said: “Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.”

New-Found Interest in Crypto

Despite the fall of crypto prices this year, institutional interest in the market has remained high as institutions bring in fresh money and more money than retail can pour in. Established asset managers like Abrdn, Charles Schwab, and BlackRock recently took a hard look, seeking to secure a foothold in the market.

Last month, Abrdn, the U.K. investment group, bought a stake in digital assets exchange Archax. BlackRock opened a private trust offering institutional clients in the U.S. direct exposure to Bitcoin. Schwab also launched a crypto-linked exchange-traded fund (ETF).

Last month, South Korean securities companies (including Mirae Asset Securities and Samsung Securities) reportedly focused on the crypto industry, with plans to set up digital asset exchanges in the first half of 2023.

Early this month, SEBA Bank launched Ethereum staking services, an institutional-grade offering enabling clients to earn staking rewards on Ethereum.

Asset managers have become open to multiple futures of finance. They are increasingly embracing cryptocurrency as a legitimate way of hedging sophisticated investors’ portfolios, like other alternative assets such as Gold.

Some brands have circumvented the usual Bitcoin-first route and ventured into non-fungible tokens (NFTs), ETFs, and the metaverse.

EDX Markets Debuts Cryptocurrency Trading Platform and Wraps Up Latest Investment Round

In a key milestone, EDX Markets has successfully kick-started its cryptocurrency trading operations and completed a fresh funding round. Based in Hoboken, New Jersey, EDX has been established as a trusted marketplace for digital assets, promoting safe and compliant trading through reliable intermediaries.

EDX has garnered the attention of major financial institutions, becoming the preferred cryptocurrency marketplace for industry leaders. The platform stands out with its non-custodial model designed to prevent conflicts of interest. It also offers benefits like enhanced liquidity, competitive quotes, and a retail-only quote, giving retail-originated orders a better pricing advantage. Currently, EDX supports the trading of well-known cryptocurrencies (mainly POW), including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

Another milestone is on the horizon for EDX. Later this year, it plans to launch a clearinghouse, EDX Clearing, which will settle trades matched on EDX Markets. The clearinghouse will function as a central counterparty for trades, reducing settlement risks, promoting price competition, and increasing operational efficiency.

The launch of EDX and the forthcoming EDX Clearing comes on the heels of a successful new funding round. The round saw participation from strategic investors such as Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology. These firms join the platform’s founding investors, including heavyweights like Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial. The newly secured funding will bolster the ongoing development of EDX’s trading platform and strengthen its market leadership position.

Jamil Nazarali, CEO of EDX, expressed his confidence in the platform’s potential and its ability to attract investors. He stressed EDX’s commitment to incorporating the best practices from traditional finance into the cryptocurrency market and hinted at the significant edge EDX Clearing will provide by improving competition and operational efficiency.

EDX Markets Partners with Solidus Labs to Monitor $16 Trillion in Crypto Trading with HALO Platform

EDX Markets, a pioneering crypto exchange backed by a consortium of major Wall Street firms including Citadel, Fidelity, Schwab, Virtu, Sequoia, Paradigm, and others, announced a partnership with Solidus Labs on August 10, 2023, to enhance transaction monitoring across EDX’s platform. The collaboration aims to provide customers with seamless end-to-end transactional risk management capabilities, reflecting key institutional best practices and maintaining the highest compliance standards in the cryptocurrency industry.

EDX Markets is designed to meet the needs of both crypto-native firms and the world’s largest financial institutions, enabling safer, faster, and more efficient trading and settlement of digital assets. Products listed for trading on EDX include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

EDX has chosen Solidus Labs’ HALO platform, a leading crypto market integrity hub, as a central tool to manage and assess risk, prevent financial crime, and comply with evolving regulatory requirements. Solidus Labs is known as the category-definer for crypto-native market integrity solutions, including trade surveillance, transaction monitoring, and threat intelligence. Their mission is to enable safe crypto trading across all centralized and DeFi markets.

HALO currently monitors over 250 million events and $16 trillion in on- and off-chain trading volume per day across more than 150 markets, protecting over 25 million individual and institutional investors. EDX will leverage Solidus Labs’ machine learning-powered detection models and Universal Client Risk Profile capability to identify unusual or suspicious activity on its platform and coordinate the appropriate risk response.

Chris Tyrrell, Chief Compliance Officer of EDX, stated, “Solidus’ transaction monitoring solution is a powerful addition to EDX’s suite of compliance measures. We are focused on bringing the best of traditional finance to cryptocurrency markets and are committed to ensuring safe and compliant trading. As an industry-leading provider of AML solutions for detection of money laundering and financial crime activities in crypto markets, Solidus will help us protect the integrity of our platform while meeting regulatory expectations and Wall Street-grade best practices.”

Asaf Meir, Solidus Labs’ Founder and Chief Executive, added, “We are proud to support EDX’s vision and meet the demand for a safe and compliant cryptocurrency market. Bridging traditional and digital finance through crypto-native risk mitigation tools is core to our mission, and we look forward to working together with EDX to continually increase the standards for safe and integrity-driven crypto trading.”

By leveraging Solidus Labs’ expertise in transaction monitoring, EDX aims to enhance the safety and integrity of its platform, aligning with the growing demand for compliance and risk management in the cryptocurrency space.

EDX Markets is Expanding in Singapore

Cryptocurrency trading platform EDX Markets, backed by heavyweights like Citadel Securities and Fidelity Digital Assets, is broadening its horizon with a strategic expansion into Singapore. This move marks a significant step in EDX Markets’ growth trajectory, following a successful second funding round co-led by Pantera Capital and Sequoia Capital. Although the exact funding size remains undisclosed, the investment enthusiasm is evident as shares were purchased at double their initial 2022 value.

EDX Markets’ foray into Singapore is not just a geographic expansion; it’s a strategic diversification of its product offerings. The company plans to introduce spot and perpetual futures trading, catering to a wide array of investors and traders in the dynamic Asian financial hub. Singapore’s robust financial ecosystem and its open-arms approach to fintech innovation make it an ideal location for EDX Markets to diversify its product suite and tap into a rich pool of financial talent.

This expansion is underpinned by the launch of EDX Clearing, a cutting-edge, non-custodial clearing solution for digital asset trading. This feature significantly elevates EDX’s marketplace, offering a competitive edge by enabling a single net settlement process through EDXC. This innovation not only reduces credit risk but also streamlines the trading process, thereby attracting more institutional investors.

The company’s approach to custody is another aspect worth noting. In a market where custodial services are a hot topic, EDX Markets has chosen to partner with Anchorage Digital for custodial services, ensuring that users can trade without the need for pre-funding in fiat or cryptocurrency. This non-custodial model is a strategic move to mitigate the risks associated with fund co-mingling, making the platform more attractive to cautious institutional investors.

EDX Markets’ expansion into Singapore and its innovative product offerings are set against the backdrop of a recovering cryptocurrency market. The platform is poised to offer institutional investors a robust venue for trading major tokens like Bitcoin, Ether, and Litecoin, without the typical custodial concerns.

EDX Markets: Pioneering Digital Asset Trading with Institutional Focus

Introduction

EDX Markets is a pioneering digital asset marketplace that aims to bridge the gap between traditional finance and the rapidly evolving world of cryptocurrencies. Founded by a consortium of leading financial institutions and venture capital firms, EDX Markets is poised to revolutionize the way digital assets are traded, leveraging best practices from traditional financial markets on a purpose-built crypto platform.

Backed by Industry Leaders

EDX Markets boasts an impressive list of backers, including some of the most prominent names in finance and venture capital. Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, and Paradigm are among the key investors in the platform. This strong support from industry leaders underscores the potential of EDX Markets to transform the digital asset trading landscape.

Catering to Institutional Investors

One of the primary focuses of EDX Markets is to meet the unique needs of institutional investors who are increasingly looking to gain exposure to digital assets. By providing a robust, secure, and compliant trading environment, EDX Markets aims to attract more institutional capital into the crypto space, thereby enhancing liquidity and market stability.

Advanced Technology and Innovative Features

EDX Markets is built on cutting-edge technology that enables faster, safer, and more efficient trading and settlement of digital assets. The platform offers a range of innovative features, such as competitive pricing, transparent markets, and advanced risk management tools, to ensure a seamless trading experience for its users.

Operational and Capital Efficiency

One of the key advantages of EDX Markets is its ability to provide operational efficiency through a single marketplace and an integrated settlement process. This streamlined approach reduces complexity and minimizes the risk of errors or delays in the trading process. Additionally, the platform offers capital efficiency through net settlement, allowing users to optimize their capital allocation and reduce trading costs.

Robust Market Surveillance and Risk Management

To ensure the integrity of its marketplace, EDX Markets has implemented robust market surveillance and supervision mechanisms. The platform employs advanced monitoring tools and data analytics to detect and prevent manipulative or abusive trading practices. Furthermore, EDX Markets has put in place best-in-class risk management systems to safeguard user assets and maintain the stability of the platform.

Experienced Leadership Team

EDX Markets is led by a team of seasoned professionals with extensive experience in both traditional finance and the digital asset space. The company’s management team includes executives from leading financial institutions, ensuring that EDX Markets is well-positioned to navigate the complex regulatory landscape and deliver value to its users.

Expanding Global Presence

As part of its growth strategy, EDX Markets is actively expanding its presence in key markets around the world. In January 2024, the company announced plans to launch a crypto exchange in Asia, with funding from prominent investors such as Sequoia and Pantera Capital. This move highlights EDX Markets’ commitment to serving the global digital asset community and driving the adoption of cryptocurrencies worldwide.

Regulatory Compliance and Transparency

EDX Markets places a strong emphasis on regulatory compliance and transparency. The company works closely with regulators to ensure that its platform operates within the bounds of applicable laws and regulations. By adhering to the highest standards of compliance and transparency, EDX Markets aims to build trust among its users and contribute to the overall maturation of the digital asset industry.

Conclusion

EDX Markets represents a significant step forward in the evolution of digital asset trading, offering a trusted, efficient, and liquid marketplace for both institutional investors and crypto-native firms. With its cutting-edge technology, innovative features, and robust risk management framework, EDX Markets is well-positioned to drive the mainstream adoption of cryptocurrencies and shape the future of digital asset trading.