Fidelity, Schwab, and Citadel Launch Institutional Crypto Exchange

• EDX Markets, a crypto exchange with backing from Fidelity Digital Assets, Charles Schwab, and Citadel Securities, has officially commenced trading in four cryptocurrencies.
• EDX is a “non-custodial” exchange that will also launch a clearinghouse business later this year for the settlement process.
• The SEC has not classified any of the digital assets supported by EDX as securities, but the exchange’s lack of registration leaves it vulnerable to potential regulatory violations.

EDX Markets Launches Crypto Exchange

EDX Markets, a crypto exchange with backing from prominent financial entities including Fidelity Digital Assets, Charles Schwab, and Citadel Securities, has officially commenced trading in four cryptocurrencies. The launch follows EDX’s earlier plan to introduce a “non-custodial” exchange which was announced in September 2020.

Non-Custodial Exchange

Aiming to cater to the needs of major financial institutions, EDX plans to operate as a “non-custodial” exchange and store customer assets with trusted third-party banks and crypto custodians. This comes after the company closed its second funding round securing investments from new backers including Miami International Holdings and affiliates of DV Trading, GTS, GSR and Hudson River Trading.

SEC Registration Process

The launch of EDX comes weeks after the SEC’s lawsuit against Binance and Coinbase for trading crypto assets that are securities and required registration. None of the assets listed on EDX website are included in this case since they do not require registration with the U.S Securities & Exchange Commission (SEC). However SEC chair Gary Gensler has consistently encouraged crypto firms to engage in registration processes emphasizing compliance in the industry leading to legal action against multiple companies for violating federal securities laws.

First Spot Bitcoin Exchange

This news release comes just days after BlackRock’s recent application to introduce the first-ever spot bitcoin exchange traded fund (ETF). This shows an increased interest among major institutional investors who want exposure to cryptocurrency markets without having direct access or control over individual coins or tokens within their portfolios.

Conclusion

Overall it seems like major financial players such as Fidelity Digital Assets have taken note of increasing public interest towards cryptocurrency markets thus investing into exchanges such as EDX which are compliant with government regulations yet offer more secure ways for customers to trade these digital assets without taking full responsibility for their custody themselves