EDX Markets announced the launch of digital asset trading on its marketplace today. Crypto products available for trading include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). While it is not immediately clear if and when other digital assets will be listed, the initial offerings steered clear of digital assets the Securities and Exchange Commission claim are securities.
The launch of EDX arrives at an interesting time as multiple crypto exchanges have retrenched or been the target of regulatory scrutiny. Binance, the largest crypto exchange in the world, has been sued by the SEC for trading unregistered securities, among other alleged infractions. At the same time, Coinbase (NASDAQ:COIN), the only publicly traded crypto exchange, has also received notice of an SEC enforcement action.
EDX also benefits from receiving establishment support. Big financial services names that have built solid businesses providing more traditional securities offerings. The list is long, including founding investors, Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial.
EDX recently closed on a funding round bringing along additional investors like Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology.
EDX describes itself as a “First of its kind” digital asset marketplace that provides a compliant trading platform. What EDX does not plan to do, at least not initially, is to offer retail crypto trading services. What may occur at some point in the future is that EDX may power retail crypto trading on platforms like Schwab – once the regulatory dust settles at the SEC.
Later in 20232, EDX says it will launch EDX Clearing to settle trades matched on EDX Markets. The clearinghouse will facilitate trades against a central counterparty, allowing participants to receive greater price competition and reduced settlement risks.
Jamil Nazarali, CEO of EDX, says its goal is to offer access to a safe and compliant crypto market.
“We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices. With the endorsement of our new and growing list of investors and customers, we’re proud to launch trading and look forward to further enhancements to our offering. Looking ahead, EDX Clearing will be a major differentiator for EDX — and resolve an unmet need in the market – by enhancing competition and creating unparalleled operational efficiency through a single settlement process.”
