An institutional crypto exchange backed by Fidelity, Schwab, and Citadel is launching today. EDX will only support spot trading activities for four cryptocurrencies. In this, the SEC’s recent moves play a decisive role.
Backed by Wall Street firms, EDX enters the market
EDX Markets, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, is live from June 20. EDX will not directly serve individual investors as it focuses on institutional investors. Thus, it distinguishes itself from traditional crypto exchanges. In addition, trading access is provided via the API. Also, it does not provide a front-end or trading graphical user interface.
According to the WSJ, investors rely on individual brokerages to direct trading orders for cryptocurrencies to their market. Making a statement on the subject, Jamil Nazarali, Chief Executive Officer of EDX, said that the failure of FTX has increased demand for crypto exchanges that do not have an inherent conflict of interest regarding the storage of client funds.
EDX is not registered with the SEC, only lists four crypto assets
According to its website, EDX only supports spot trading activities for four cryptocurrencies: Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH). Meanwhile, the exchange is not registered with the US Securities and Exchange Commission (SEC).
None of the digital assets supported by EDX have been classified as securities by the SEC. However, the new exchange is likely to conflict with the regulatory authority due to its lack of registration. Because the Commission, led by Chairman Gary Gensler, has repeatedly recommended crypto firms to “come and register”. As you follow on Kriptokoin.com, the regulator has also filed several enforcement charges against crypto firms for violations of federal securities law, emphasizing the non-compliance of crypto companies. Gensler argued that current securities laws adequately govern the digital assets space.
Wall Street firms continue to be interested in crypto
Meanwhile, the group of financial industry giants backing the stock market shows that Wall Street firms still have a large appetite for the emerging industry, despite the US SEC’s approach. Last week, BlackRock, one of the world’s largest asset managers, applied to create a spot Bitcoin ETF. Later, unconfirmed rumors surfaced that Fidelity was considering buying Grayscale or applying for a Bitcoin spot ETF.
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