In the ever-evolving world of cryptocurrencies, a new player has stepped onto the stage: the EDX crypto exchange. This promising new platform is backed by financial giants Charles Schwab, Fidelity Digital Assets, and Citadel Securities, and has officially launched trading in four crypto assets.
The Rise of EDX
EDX first revealed its ambitious launch plans for a "non-custodial" exchange in September, two months prior to the collapse of FTX. This strategic approach aimed to address the skepticism many large and sophisticated financial institutions held towards centralized crypto services providers. By building an infrastructure designed to meet the needs of these institutions, EDX positioned itself as a trustworthy alternative in the crypto space.
The announcement of EDX's official launch comes on the heels of BlackRock's application to launch what could be the first spot Bitcoin exchange-traded fund in the U.S. This move signifies that despite the crypto industry's recent challenges and increased regulatory scrutiny, long-term institutional interest in cryptocurrencies remains strong.
A Distinct Approach
At the heart of EDX's business model is its commitment to operate as a "non-custodial" exchange. This means EDX will not handle customer assets directly. Instead, it will serve as a platform where a network of firms can execute and settle trades between crypto assets and fiat currencies. This approach aims to assuage fears of misuse of funds and to bolster the exchange's credibility in a sector fraught with uncertainty..
EDX offers trading in Bitcoin, Ether, Litecoin, and Bitcoin Cash. Notably, none of these crypto assets were labeled "crypto asset securities" in the lawsuits the U.S. Securities and Exchange Commission filed against Binance and Coinbase recently, which adds an extra layer of security for EDX traders.
Next Steps and New Investors
As EDX continues to grow, the company has plans to launch a clearinghouse business this year to streamline the settlement process. In a move to ensure maximum security and transparency, customer assets will be held at third-party banks and a crypto custodian..
In addition to its operational plans, EDX has successfully closed a second funding round, attracting new investors. The options-exchange operator Miami International Holdings and affiliates of proprietary trading firms such as DV Trading, GTS, GSR, and Hudson River Trading have now joined the EDX journey.
A Bright Future Ahead
With the backing of financial powerhouses and a unique, security-oriented approach to crypto trading, EDX is poised to make a significant impact in the cryptocurrency world. As this new player navigates the crypto landscape, it's clear that EDX's strategic approach to crypto trading represents a promising step forward for institutional involvement in the crypto space. As the world of cryptocurrencies continues to evolve, EDX is undoubtedly a platform to watch.
