EDX Markets Launches Trading for Major Cryptocurrencies
EDX Markets, a cryptocurrency platform backed by Charles Schwab, Fidelity, and Citadel Securities, has introduced trading options for popular cryptocurrencies including bitcoin (BTC), ether (ETH), litecoin (LTC), and bitcoin cash (BCH).
Key Highlights
- EDX Markets, supported by Schwab and Fidelity, now offers trading for bitcoin, ether, litecoin, and bitcoin cash.
- The platform operates as a ‘non-custodial’ exchange, utilizing third-party custodians instead of holding customer crypto assets.
- Plans are in place to launch a clearinghouse later this year to facilitate trade settlements for customers.
- New investors in EDX include Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology.
Understanding EDX’s Unique Platform Approach
EDX distinguishes itself from recent SEC lawsuits targeting crypto asset securities by positioning as a ‘non-custodial’ exchange. This approach appeals to major financial institutions interested in crypto exposure but cautious of centralized service providers like Binance and Coinbase.
A non-custodial model ensures that customer assets are held by third-party banks acting as crypto custodians, minimizing risks of fund misappropriation.
Comparing EDX with Custodial Exchanges
Unlike custodial exchanges such as Coinbase, where the platform holds customer assets, EDX’s non-custodial nature provides added security against potential hacks and reduces custodial fees that could impact profits.
While custodial exchanges simplify crypto trading, the risks of asset loss in case of security breaches are higher compared to non-custodial models.
EDX’s Future Plans and Industry Impact
EDX functions as a platform connecting firms for crypto-to-fiat trades. Although it currently does not settle trades, plans for a clearinghouse launch later this year will enable seamless settlements.
The exchange’s debut aligns with BlackRock’s recent filing for a spot bitcoin ETF in the US, indicating sustained institutional interest in the crypto market despite regulatory challenges.
Additionally, EDX’s successful second funding round attracted investments from Miami International Holdings and affiliates of DV Trading, GTS, GSR, and Hudson River Trading.