Today EDX Markets was unveiled as a new cryptocurrency and digital asset exchange backed by broker-dealers, market makers and venture capital firms. While it is an independent entity, the investors include Charles Schwab, Citadel Securities, Fidelity Digital Assets℠, Paradigm, Sequoia Capital and Virtu Financial. The technology infrastructure comes from MEMX.
The key differentiator is that users will be able to access cryptocurrencies through their traditional broker-dealer rather than having to have a crypto exchange account.
The new exchange says it will address conflicts of interest seen in today’s crypto exchanges by separating the exchange from the traders and using a network of custodians. That’s something the SEC Chair Gary Gensler has recently been emphasizing. EDXM also plans to net trades and settle on the blockchain rather than using bilateral settlement.
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