EDX Markets, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity Investments and Charles Schwab, is live today, June 20th.
EDX differs from traditional cryptocurrency exchanges by focusing on institutional investors and not directly serving individual investors. Additionally, trading access is via an API and does not provide a front-end or trading graphical user interface.
The WSJ reported that the company relies on retailers to route investors’ cryptocurrency trading orders to its marketplace.
EDX CEO Jamil Nazarari has reportedly said the FTX failure has increased demand for cryptocurrency exchanges that inherently have no conflicts of interest associated with custody of customer funds. .
EDX is not registered with the SEC and only lists 4 crypto assets
according to it, websiteEDX supports spot trading activity in only four cryptocurrencies: Bitcoin, Bitcoin Cash, Litecoin and Ethereum, and is not registered with the U.S. Securities and Exchange Commission (SEC).
None of the EDX-backed digital assets have been classified as securities by the SEC, but the new exchange is still unregistered, which could pose a regulatory challenge.
Under the chairmanship of Gary Gensler, the commission has repeatedly recommended cryptocurrency companies to “join and register.” The regulator has also filed several enforcement complaints against cryptocurrency companies for violations of federal securities laws, highlighting their non-compliance.
Gensler argued that existing securities law adequately governs the digital asset sector.
Wall Street firms still interested in cryptocurrencies
Meanwhile, the financial industry group behind the exchange shows Wall Street firms still have a lot of appetite for emerging industries, despite the US SEC’s approach.
Last week, BlackRock, one of the world’s largest asset managers, applied to create a spot Bitcoin ETF. After that, unconfirmed rumors surfaced that Fidelity was considering acquiring Grayscale and applying for a Bitcoin spot ETF.
Post-EDX Market, an institutional cryptocurrency exchange backed by Fidelity, Schwab and Citadel, launched today and first appeared on CryptoSlate.
