Crypto Exchange Backed by Charles Schwab and Fidelity Launches Trading in Four Cryptocurrencies

EDX Markets, a crypto exchange backed by financial giants such as Charles Schwab, Fidelity Digital Assets, and Citadel Securities, has officially launched trading in four cryptocurrencies. The exchange aims to cater to the needs of large financial institutions and operates as a non-custodial platform, providing a solution for those institutions that are interested in cryptocurrencies but skeptical of centralized crypto service providers. EDX allows trading of bitcoin, ether, litecoin, and bitcoin cash.

The launch of EDX comes shortly after BlackRock filed an application to launch the first spot bitcoin exchange-traded fund (ETF) in the United States. This development indicates that institutional interest in the crypto industry remains strong despite the negative reputation caused by incidents involving FTX and other bad actors. EDX’s choice of cryptocurrencies to trade aligns with the recent lawsuits brought by the U.S. Securities and Exchange Commission against Binance and Coinbase, none of which implicated the mentioned cryptocurrencies as “crypto asset securities.”

To address concerns about fund misuse, EDX operates as a non-custodial exchange. Instead of directly handling customer assets, it serves as a platform for executing and settling trades between cryptocurrencies and fiat currencies. EDX plans to launch a clearinghouse business to facilitate the settlement process, while customer assets will be held at third-party banks and a crypto custodian. The company recently concluded a second funding round, securing investments from Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading.