key takeaways
- EDX Markets (EDXM) has announced plans to launch a crypto exchange aimed at individuals and institutions.
- The exchange plans to offer the best trading prices by collecting liquidity from multiple market makers.
- EDXM will be backed by Fidelity as well as Charles Schwab, Citadel, Virtu Financial, Paradigm and Sequoia.
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A group of Wall Street titans, which includes Fidelity, Charles Schwab and Citadel, are collectively launching a cryptocurrency exchange called EDX Markets.
Fidelity, others launch EDX Bazaar
Wall Street Group is launching a crypto exchange.
EDX Markets (EDXM) today announced its plans to launch a cryptocurrency exchange for retail and institutional investors.
EDXM intends to become “the first of its kind” in the realm of centralized crypto exchanges by facilitating trading through trusted intermediaries. It aims to provide the best value by collecting liquidity from multiple market makers.
The exchange is backed by a consortium of “broker-dealers, global market makers and venture capital firms”, says EDXM.
Leading the list of companies backing the firm is Fidelity Digital Assets, best known for providing crypto custody and trading services to institutional investors.
Coincidentally, Galaxy Digital CEO Mike Novogratz reported Monday that Fidelity reportedly had plans to “move retail customers to crypto.” It appears that Novogratz may be referring to today’s announcement related to EDXM.
Other firms involved in EDXM include multinational finance firm Charles Schwab, market maker firms Citadel Securities and Virtu Financial, and venture capital firms Paradigm and Sequoia Capital. Several other firms are expected to partner with EDX Markets in the future.
Many of those companies—notably Charles Schwab—are considered “Wall Street firms” because of their importance in the financial markets, although not all of them are located on Wall Street.
Former Citadel executive Jameel Nazrily will serve as EDXM’s CEO. Tony Acuna-Rohter, formerly CTO of ErisX, will serve as CTO of EDXM. Members of other firms, including seats on EDXM’s board of directors, will also have a role in the company.
EDXM will also leverage the technology of MEMX, the stock exchange and market operator established in 2019, which many members share with the upcoming crypto service.
Today, EDXM called the cryptocurrency a “$1 trillion global asset class with over 300 million participants”, adding that unlocking demand for “millions more” is needed for a platform that meets compliance and security standards. can do.
The company did not indicate when it might launch the exchange.
Disclosure: At the time of writing, the author of this article owns BTC, ETH and other cryptocurrencies.