• EDX Markets, a crypto exchange with backing from prominent financial entities such as Charles Schwab, Fidelity Digital Assets, and Citadel Securities, has launched trading in four cryptocurrencies.
• EDX is operating as a “non-custodial” exchange and plans to launch a clearinghouse business later this year for settlement process.
• The SEC has not classified any of the digital assets on EDX as securities but lack of registration leaves it vulnerable to potential regulatory violations.
EDX Markets Crypto Exchange Launches
EDX Markets, a crypto exchange with backing from prominent financial entities including Charles Schwab, Fidelity Digital Assets, and Citadel Securities, has officially commenced trading in four cryptocurrencies – Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) and Ethereum (ETH). The launch follows EDX’s earlier plan to introduce a “non-custodial” exchange which was announced in September just before the FTX collapse occurred two months later.
Catering to Major Financial Institutions
EDX is aiming to cater to the needs of major financial institutions by operating as a “non-custodial” exchange and could address the skepticism surrounding centralized crypto service providers. In addition to its non-custodial approach, EDX plans to launch a clearinghouse business later this year for settlement process, while storing customer assets with trusted third-party banks and crypto custodian. The exchange has closed its second funding round securing investments from new backers including Miami International Holdings and affiliates of DV Trading, GTS, GSR and Hudson River Trading – prominent proprietary trading firms.
Registration Process
The launch of EDX comes shortly after the SEC’s lawsuit against Binance and Coinbase for trading crypto assets that are securities requiring registration. None of the assets in question are shown on the EDX website which only offers spot trading exclusively for four cryptocurrencies – BTC, BCH, LTC & ETH – operating without registration with US Securities & Exchange Commission (SEC). Although SEC did not classify any digital asset supported by EDX as securities yet lack of registration leaves it vulnerable to potential regulatory violations. SEC chair Gary Gensler encouraged crypto firms to engage in registration process while taking legal action against multiple crypto companies for violations highlighting importance of compliance in industry.
Blackrock Application
This news arrives just days after BlackRock’s application to introduce first ever spot bitcoin exchange traded fund emphasizing increased institutional demand for cryptocurrency markets.
Conclusion
The institutionalization of cryptocurrency is rapidly growing which can be seen through latest developments such as launching of EDX Markets backed by prominent financial institutions along with BlackRock’s application for introducing first ever spot bitcoin ETF showing increased institutional demand towards cryptocurrency markets . However , these developments come accompanied by increasing regulations & need associated compliance making it essential for players engaging in cryptocurrency space understand their obligations towards law .