EDX Markets, a cryptocurrency exchange backed by major financial giants including Citadel Securities, Fidelity Investments, and Charles Schwab, is set to commence its operations today, according to a report by the Wall Street Journal.
The exchange, which was officially announced last October, garnered significant attention in the financial world. It will initially list four cryptocurrencies and is expected to make the official announcement later today. The initial offerings on the platform will include Bitcoin, Ether, Bitcoin Cash, and Litecoin.
EDX is designed to provide a platform for seamless trading of cryptocurrencies and fiat currencies, allowing users to easily buy and sell digital assets. Notably, the exchange will not be responsible for custody services but will empower users to manage their own assets through private keys.
To facilitate crypto-to-fiat currency exchanges, the platform will engage external entities for these transactions. However, EDX has plans to establish its own clearinghouse by the end of this year. Until then, the company will rely on banks and crypto custodians as third-party intermediaries.
The main focus of EDX Markets is to cater to institutional investors. The decision not to hold customer funds directly aims to eliminate security concerns and conflicts of interest. While the platform primarily targets institutional investors, retail customers of brokerage firms will indirectly benefit from the service as their buy and sell orders can be executed through the platform.
In addition to the launch, the Wall Street Journal also reported that EDX will receive investments from various companies, including Miami International Holdings, which houses multiple exchanges.
The timing of the launch is noteworthy, as it comes amid the Securities and Exchange Commission's ongoing legal actions against cryptocurrency exchanges such as Binance and Coinbase.
