EDX Markets Launches in the U.S. with Support from Major Investors

With the support of well-known companies like Fidelity Digital Assets, Charles Schwab, and Citadel Securities, EDX Markets (EDX) has announced its formal launch in the US. The company has spent the last nine months developing its technology and is now prepared to establish itself in the market for digital assets.

“I am proud to announce that EDX Markets (EDX) has successfully launched our digital asset market and completed an investment round with new equity partners,” wrote Jamil Nazarali, CEO of EDX Markets, on LinkedIn. He underscored EDX’s dedication to bringing to the crypto market the same standards of competition, transparency, fairness, and safety that investors in traditional assets want and value.

When EDX Markets first announced its launch in September, it attracted interest and investments from top traditional finance (tradfi) companies like Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel. Notably, Nazarali formerly worked for Citadel.

With the opening of its digital asset exchange, EDX Markets has raised a fresh round of funding, which also includes contributions from companies like Miami International Holdings, DV Crypto, and GTS.

EDX Markets’ New Chapter

The recent report that global asset manager BlackRock had submitted papers to the SEC to establish a spot bitcoin ETF has increased interest in the cryptocurrency sector. With a novel strategy, EDX Markets is breaking into this market: it does not maintain custody of its clients’ digital assets. Users will instead do business through intermediaries, similar to how trades are carried out on reputable markets like the New York Stock Exchange (NYSE) or the Nasdaq (NASDAQ). Regulators who support the separation of exchange and broker-dealer functions have given this strategy favorable attention.

Nazarali explained, “What we’re seeing is that increasingly, investors want to trade through their trusted intermediaries, especially after the issues surrounding FTX, which was expected to lead the digital market. If you can’t trust them, who can you trust? So, people are turning to firms that have a long-standing reputation and have proven themselves over time, which is a significant advantage for us.”

EDX Markets intends to introduce EDX Clearing in the future, which will simplify the settlement of trades matched on the EDX Markets platform.

The exchange now only supports a small number of tokens, including Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LITE), and Bitcoin (BTC). The company wants to avoid trading assets that might be regarded as securities until more regulatory clarity is developed, which is in part why this constrained offering is made given the murky regulatory environment in the United States.

Although EDX Markets may pursue international development in the future, its current main priority remains its U.S.-based activities. The business was established with the goal of resolving a particular market issue in the nation, and it wants to expand its presence there.