Binance Gone, EDX In — Institutional Crypto Exchange Launched Amid SEC Crackdown

Key Takeaways:

• EDX Markets is a new non-custodial crypto exchange
• The venture will allow trades in four crypto tokens that have regulatory clarity
• Fiat is taking over crypto.

YEREVAN (CoinChapter.com) – EDX Markets is a new cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab. The venture will only trade Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH); in other words, coins with regulatory “immunity.”

EDX is a “non-custodial” exchange

A spokeswoman for Citadel Securities, an electronic market-making firm with a huge presence in stocks and options, confirmed it was trading cryptocurrencies on EDX. Citadel Securities’ billionaire founder Ken Griffin was earlier a very public critic of crypto.

EDX representatives commented that the exchange’s approach draws on standard practices in traditional, regulated financial markets. Thus, it “differs in key ways” from how crypto exchanges typically operate. 

In detail, EDX is a “noncustodial” exchange, meaning it doesn’t directly handle its customers’ digital assets. It is a marketplace where firms agree to execute trades of coins and dollars, using its platform to agree on prices.

Furthermore, EDX won’t interact with individual retail investors directly. Instead, retail brokerages will send investors’ orders to buy and sell digital assets on the marketplace.

Fiat interest in crypto grows

EDX chief Jamil Nazarali, a longtime executive at Citadel Securities, asserted that the demand for such an exchange has been on the rise since the FTX debacle in Nov 2022. EDX lacks the “built-in conflict of interest that comes with storing customer funds.” said the CEO.

Meanwhile, the fiat “move” on crypto at its most vulnerable is no accident. The latter is a trillion-dollar sector, a third of its 2021 peak. Thus, the crypto sector possesses the necessary potential and a level of customer interest that can bring fiat companies substantial returns.

Earlier this year, investment management giant BlackRock with over $9 trillion under its wing, showed interest in crypto as well. Moreover, the company filed for a Bitcoin spot exchange-traded fund(ETF) on June 15, which has not yet been approved in the US.

Also read: Binance’s Schrödinger Problem: Exchange’s UK Office Exists And Doesn’t At The Same Time. 

The same goes for Fidelity, which is rumored to plan on acquiring digital asset manager Grayscale. Also, the corporation is now the third-largest MicroStrategy stock owner, upping its exposure by over 650% YTD. Fidelity now boasts over 700,000 shares worth $313 each, ahead of the June 21 session.

Business intelligence firm MicroStrategy is famously one of the largest Bitcoin holders on the market. It holds 140,000 BTC, approximately 0.7% of the total amount of Bitcoins that will ever be created. Thus, holding MSTR stock and Grayscale simultaneously would ensure Fidelity’s tight grip on the crypto market. 

Even the Soros Fund Management, which has been critical of crypto, assessed the sector’s asking for a “fiat takeover” after the regulatory crackdown.