Initially, EDX Markets is set to offer trading with four cryptocurrencies.
Prominent finance firms such as Citadel Securities, Charles Schwab, and Fidelity Investments are supporting a new player in the crypto exchange arena, EDX Markets.
The launch of the digital asset market was unveiled on June 20th, marking the Wall Street giant's official foray into the industry.
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EDX Markets aims to attract "industry leaders" by adopting successful strategies from conventional finance and providing unique benefits.
These benefits comprise a noncustodial model to reduce conflicts of interest, competitive quotations, and liquidity. Upon the launch, EDX allows trading of just four cryptocurrencies - Bitcoin (BTC), Litecoin (LTC), Ether (ETH), and Bitcoin Cash (BCH).
Following the launch of EDX Markets, the company plans to roll out EDX Clearing. This clearinghouse is intended to settle transactions made on the EDX Markets platform. By providing a central counterparty, this system will grant traders notable benefits such as enhanced price competition, minimized settlement risks, and boosted operational efficiencies.
As part of its expansion blueprint, EDX recently wrapped up a funding round attracting strategic investors like Hudson River Trading, GSR Markets, DV Crypto, Global Trading Strategies, and Miami International Holdings. The new capital injection will be channeled to enhance the company's trading platform and reinforce its foothold in the market.
EDX Markets has entered the crypto space at a time when the US Securities and Exchange Commission is cracking down on the crypto industry. At the beginning of June, the US securities regulator sued crypto exchanges Binance and Coinbase.
However, at the same time, BlackRock, an investment management giant, took a notable stride toward integrating cryptocurrencies. On June 15th, the firm lodged an application for the first Bitcoin spot exchange-traded fund (ETF) in the US.
This crypto exchange's initiation, backed by prominent institutions, signals a robust interest in the growing digital asset space. As the crypto landscape expands, platforms like EDX are poised to contribute significantly, bridging the gap between traditional finance and the emerging crypto world.
