Overview
EDX Markets, a cryptocurrency exchange backed by major Wall Street institutions including Citadel Securities, Fidelity Investments, and Charles Schwab, has officially launched. The platform distinguishes itself by operating as a non-custodial exchange, adhering to traditional financial standards while facilitating crypto-to-fiat trading.
Key Features
- Non-Custodial Model: EDX does not hold customer assets directly. Instead, it relies on third-party banks and crypto custodians for asset security.
- Institutional Focus: Retail investors access EDX through broker-dealers, mirroring stock market operations.
- Supported Assets: Initially offers trading for BTC, ETH, LTC, and BCH—all deemed non-securities by the U.S. SEC.
Backers and Funding
- Primary Supporters: Citadel Securities, Fidelity, Charles Schwab, Paradigm, Sequoia Capital, and Virtu Financial.
- Second-Round Investors: Miami International Holdings, DV Trading affiliates, GTS, GSR, and Hudson River Trading.
Operational Updates
EDX began executing trades in recent weeks and formally announced its launch on June 20. A clearinghouse for trade settlements is planned for late 2023.
👉 Explore EDX Markets’ innovative approach
Why This Matters
The entry of Wall Street-backed players like EDX signals growing institutional confidence in crypto markets, combining regulatory compliance with market efficiency.
FAQ Section
1. How does EDX Markets differ from other crypto exchanges?
EDX operates as a non-custodial exchange, meaning it doesn’t hold customer funds directly, reducing security risks and conflicts of interest.
2. Who can trade on EDX?
Only institutional clients and retail investors via broker-dealers can access the platform, similar to traditional equity markets.
3. Which cryptocurrencies are supported?
Initially, EDX supports BTC, ETH, LTC, and BCH—selected for their regulatory clarity.
4. What’s unique about EDX’s clearinghouse?
The upcoming clearinghouse will streamline settlements, enhancing transaction efficiency without EDX holding assets.
5. Who are EDX’s major backers?
Citadel Securities, Fidelity, and Charles Schwab lead its investor roster, alongside Paradigm and Sequoia Capital.
👉 Learn more about institutional crypto adoption
Conclusion
EDX Markets bridges traditional finance and crypto, offering a compliant, secure trading venue for major digital assets. Its launch underscores the maturation of cryptocurrency infrastructure amid increasing institutional participation.