Charles Schwab, Citadel, Fidelity Launch Crypto Exchange
Major names in the financial sector have announced the launch of a new crypto exchange called EDX Markets (EDXM). Aim at improving liquidity across the crypto market and offering customers in the U.S. exposure to digital assets, EDXM will allegedly offer better prices and a compliant product for retail and institutional investors.
Per a press release, the new crypto exchange will leverage technology from MEMX, a market operator, for its infrastructure with support from investment giants Fidelity Digital Assets, Citadel Securities, Charles Schwab, Paradigm, Sequoia Capital, and others. This will allegedly offer a better platform that current crypto exchanges by being more scalable and using a network of digital custodians.
The latter attempts to improve on the current functionality of crypto exchanges by separating the platform’s operators from the entities trading on it, the release claims. The partners behind EDXM believe the industry faces “significant conflicts of interest” that will be mitigated under this new platform.
In addition, EDXM is intended to operate as a “fully independent” company from Fidelity and the other partners. In the coming months, the crypto exchange will attempt to onboard new market participants.
Community Reacts To Fidelity-Backed Crypto Exchange
The new platform will be supported by leadership with decades of experience, the partners have brought in Jamil Nazarali, former Global Head of Business Development at Citadel Securities as CEO, as CTO Tony Acuña-Rohter, former CTO at ErisX, David Forman as General Counsel, former CLO at Fidelity Brokerage Services.
Nazarali said the following about his appointment as CEO and the crypto exchange’s objective of improving liquidity across the nascent sector:
It is a privilege to lead EDXM as we build this exciting new trading ecosystem, and I am grateful for the participation, support and guidance of our consortium members. We look forward to welcoming additional participants to the exchange, which will drive ongoing trading in this important asset class while creating a virtuous cycle of continually enhanced liquidity and efficiency supported by MEMX’s cutting-edge technology.
The crypto community’s reactions to the new exchange are mixed across social media platforms. While many believe that the initiatives highlight the institutional adoption of Bitcoin and cryptocurrencies, others are suspicious of the entities backing EDXM.
Finally, the crypto exchange Board of Directors added:
Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards. With MEMX-supported digital infrastructure that eliminates technological and organizational bottlenecks, EDXM will be a safe entry point to crypto and serve as the exchange of choice for trading digital assets on a platform designed for and used by leading financial institutions.