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Schwab, Citadel Securities, Fidelity Digital Assets, and other Wall Street firms launch EDX Markets cryptocurrency exchange. The exchange will be led by Jamil Nazarali, a former senior executive at trading giant Citadel Securities.
Financial firms including Charles Schwab (SCHW), Citadel Securities, and Fidelity Digital Assets have announced the launch of the EDX Markets cryptocurrency exchange. This is additional proof that Wall Street is looking for ways to participate in the crypto market. The exchange will be led by CEO Jamil Nazarali, a former senior executive at trading giant Citadel Securities.
According to the press release, EDX Markets states “a first-of-its-kind exchange that will address latent demand for digital asset trading by enabling safe and compliant trading of digital assets through trusted intermediaries.” The new exchange will combine proven technology provided by MEMX with best practices from traditional financial markets and tighter spreads enabled by greater liquidity, to support secure, fast, and efficient cryptocurrency trading for U.S. retail, and institutional investors.
EDXM will enable a highly liquid cryptocurrency ecosystem that aggregates liquidity from multiple market makers to reduce spreads and improve transparency. This commitment to price discovery and efficiency is expected to result in better prices for investors than those offered by existing cryptocurrency exchanges. EDXM operates as a fully independent entity backed by financial industry leaders, the statement said.
By leveraging a network of select digital custodians to safeguard assets, trades will be netted and settled on the blockchain for greater speed and efficiency at a lower cost, eliminating the need for expensive bilateral settlement. Customer security and regulatory compliance are also core fundamental principles for EDXM. In particular, it will remove significant conflicts of interest that affect existing cryptocurrency exchanges by separating responsibility for operating the exchange from the entities trading on it.
Mr. Nazarali said, “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 additional welcoming 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.”
EDXM's Board of Directors commented, “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.”
Jonathan Kellner, CEO of MEMX said, “We are excited to partner with EDXM on this important and innovative venture. This marks a new chapter for MEMX as we bring our scalable market technology to other asset classes and market operators.”
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.