EDX Crypto Exchange Goes Live Backed By Citadel And Fidelity

Updated: 20 June 2023

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EDX Markets has made a foray into the crypto market thanks to the backing of three powerhouse names. Based on a WSJ report, prominent financial firms Citadel Securities, Fidelity Investments, and Charles Schwab have supported the debut. Notably, these are the world’s largest market maker, the third-largest asset manager globally, and multinational services company respectively.

Financial giants, led by #Fidelity, announced the launch of their own #cryptocurrency exchange 🤯

The exchange will be called #EDX Markets.#Fidelity, a company with ~$4 trillion under management, was rumored a couple of days ago that they would apply for a #Bitcoin ETF. pic.twitter.com/XF1L1MXJXp

— Mia Brown (@MissMiaNFTs) June 20, 2023

Despite the recent regulatory crackdown by the Securities and Exchange Commission (SEC) and ongoing market volatility, EDX has already commenced executing trades and is preparing to announce an official launch.

EDX Markets: Redefining Cryptocurrency Exchanges with a Non-Custodial Approach

Setting itself apart from conventional cryptocurrency exchanges, EDX operates as a “non-custodial” exchange. This means that it does not directly handle customers’ digital assets. Instead, it serves as a marketplace where firms can agree to execute trades, facilitating direct asset transfer between participating entities.

In the future, EDX plans to introduce a clearinghouse to facilitate trade settlement. This clearing house will involve the participation of third-party banks and a cryptocurrency custodian responsible for safeguarding customer assets.

The non-custodial approach adopted by EDX is expected to attract investors and brokers who are cautious about the risks associated with traditional crypto exchanges. Recent events, such as the failure of FTX, have underscored the importance of safe custody practices.

Unlike many crypto exchanges, EDX will not directly serve individual investors. Instead, it anticipates retail brokerages will route investors’ orders to its marketplace for execution.

EDX Cryptocurrency Offerings

EDX’s cryptocurrency offering will initially be limited to four major digital currencies: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). By focusing on these cryptocurrencies, which the SEC has not classified as securities, EDX aims to minimize potential regulatory issues.

Jamil Nazarali, the CEO of EDX, brings significant experience to the role. He has history holding executive positions at Citadel Securities, one of the primary backers of the new exchange.

As EDX forges ahead in the cryptocurrency market, several factors position it as an intriguing player amidst the evolving landscape of digital asset exchanges. These include its unique non-custodial model, strategic partnerships, and focused selection of cryptocurrencies. The extent of its success will depend on its ability to navigate regulatory challenges and address the concerns raised by the crypto community.

EDX Launch Causes A Controversy

EDX’s launch occurs during a challenging period for the cryptocurrency market. Regulatory actions by the SEC have resulted in lawsuits against major companies like Coinbase and Binance. The regulator accused them of offering illicit products within the United States. Furthermore, most cryptocurrencies are struggling to regain their previous all-time highs, achieved in 2021.

However, some crypto community members have criticized EDX for excluding certain cryptocurrencies from its offering. They argue that the exchange aligns itself with the inner circle, omitting cryptocurrencies that the SEC recently categorized as securities.

Well well well. now it all makes sense why Gary was going after all those “other” crypto exchanges. They weren’t part of the inner circle club.

Citadel and Fidelity-backed EDX crypto exchange has gone live https://t.co/pQVlHSKO5d

— Digital Asset News (@NewsAsset) June 20, 2023

This controversy has reignited criticism directed at Gary Gensler, the Chairman of the SEC. Crypto enthusiasts believe that Gensler’s close ties to financial giants like Citadel Securities, Fidelity, and Charles Schwab, were behind the recent attack on cryptocurrencies.

In addition, the timing of EDX’s launch drew criticism from some crypto enthusiasts. They questioned the decision to enter the market immediately after the SEC’s charge against two of the most prominent cryptocurrency exchanges.

There it is.

Crypto Exchange EDX Markets Backed by Citadel Securities, Fidelity, Schwab Starts Operations

Drown the crypto native exchanges in lawsuits, generate fear around them, and then let the TardFi vultures swoop in.https://t.co/WT4kJ0mbk9 https://t.co/oEus0ZG49v

— Hsaka (@HsakaTrades) June 20, 2023

Moreover, the recent speculation surrounding Fidelity, a company managing assets worth $4 trillion, applying for a bitcoin ETF just a few days ago has also raised questions about the timing of EDX’s launch. This speculation is significant considering Fidelity’s prominent role as a major backer of the new cryptocurrency exchange.