Major financial companies have come together to create EDX Markets (EDXM), a new exchange that will trade digital assets through trusted intermediaries. The exchange will serve institutional and retail investors.
The new exchange will be backed by Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial, according to an announcement published on September 13. Jamil Nazarali has moved from Citadel Securities, where he was global head of business development, to the exchange as its CEO.
EDXM’s board of directors, made up of representatives of the founding members, commented:
“Cryptocurrency is a trillion dollar 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 standards of compliance and security.”
Galaxy Digital CEO Mike Novogratz recently hinted that Fidelity would enter cryptocurrency retail. Citadel Securities founder Ken Griffin was a critic of cryptocurrencies in the past, but has become more accepting of digital assets in recent months.
EDXM will settle trades on a blockchain through a network of digital custodians. He stated in a statement that the exchange will “eliminate significant conflicts of interest that plague existing cryptocurrency exchanges by separating responsibility for the operation of the exchange from the entities that operate on it.”
Furthermore, the exchange promised “a highly liquid cryptocurrency ecosystem that aggregates liquidity from multiple market makers to reduce spreads and improve transparency.” Paradigm recently partnered with FTX to offer spread trading for eight cryptocurrencies.
MEMX is pleased to share that new digital asset exchange EDX Markets (EDXM) will be leveraging MEMX trading technology infrastructure to support secure, fast, and efficient cryptocurrency trading for US retail and institutional investors. More at: https://t.co/gjA3XEaCjU pic.twitter.com/NhTZaRMIkU
— MEMX (@memxtrading) September 13, 2022
The exchange will be powered by technology developed by Members Exchange (MEMX), a platform created by many of the same founding companies in 2019.
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