EDX Markets plans to step into the crypto space just when the regulatory developments are quite hot and the US SEC has been cracking hard on crypto firms.
The cryptocurrency landscape in America seems to be undergoing a seismic shift, and it’s still too early to say whether it is for the good or the bad. As per the latest report from Wall Street Journal, crypto exchange EDX Markets is planning to start operations in the US.
Interestingly, crypto exchange EDX Markets is backed by some of the top financial giants such as Fidelity Investments, Citadel Securities, and Charles Schwab. As the cryptocurrency exchange steps into the market, it is wary of all the troubles at crypto exchange FTX and Binance, that unfolded over the last year.
The scope of the operations for EDX Markets is still not clear, however, the WSJ report notes that the crypto exchange won’t directly serve individual customers or handle customers’ digital assets.
Earlier this year, EDX Markets partnered with Paxos Standard for offering custodial solutions. As we know, Paxos is regulated by NYDFS and shall put all EDXM customer assets in a bankruptcy-remote trust. Back then, EDX Markets CEOJamil Nazarali said:
“With compliance and security as key differentiators of EDXM’s offering, we are thrilled to partner with Paxos to deliver the gold standard in digital asset custody services to our investors. With Paxos’ best-in-class solutions along with MEMX’s technology powering the exchange, EDXM now has all the tools to make institutional-grade digital asset trading available to investors for the first time.”
America’s Changing Crypto Landscape
The recent developments show that despite the strong regulatory action by the US SEC, big market players are still keen to enter the crypto space. Earlier this month, the US Securities and Exchange Commission (SEC) filed lawsuits against two of the world’s largest cryptocurrency exchanges – Binance and Coinbase – in a move to tighten its grip[ over the crypto space.
However, a week after, the world’s largest asset manager BlackRock filed for a spot Bitcoin ETF dubbed the iShares Bitcoin Trust. Interestingly, BlackRock has chosen Coinbase as its custodial partner despite the SEC lawsuit.
BlackRock and Nasdaq have made an agreement to share information about trading, clearing, and identifying customers. This shows that BlackRock is taking a careful approach to overcoming regulatory challenges and gaining approval for its application. It’s an important step in bringing together traditional finance and blockchain technology.
It’s worth noting that Coinbase’s involvement in BlackRock’s application highlights the close relationship between traditional financial institutions, regulators, and cryptocurrency platforms. This reflects a larger trend of merging the traditional finance industry with the world of cryptocurrencies.
Reports suggest that Fidelity Investments will be making a similar move. This shows that big players are still interested in crypto. Thus, crypto in America is not dying anytime soon. Dawn Fitzpatrick, CEO of Soros Fund Management, said:
“Crypto is here to stay. What has happened is clearly a setback. But right now I actually think it is a huge opportunity for the incumbent financial firms to actually take the lead.”
Other crypto news can be found here.