Charles Schwab, Citadel-Backed Startup Is Building Crypto ‘Plumbing’ for Big Banks

A cryptocurrency exchange called EDX Markets, which is backed by several Wall Street firms including Charles Schwab, Citadel Securities and Fidelity Digital Assets, executed its first trades on Tuesday, signaling that some institutions are not preparing for the market despite recent regulatory pressure The USA are paving the way to crypto

The goal is to bring elements of traditional finance to crypto, with an emphasis on compliance and mitigating conflicts of interest. EDX also announced that it has closed a new round of funding that also includes companies such as GSR Markets and Miami International Holdings.

The exchange’s CEO, Jamil Nazarali, acknowledged in a statement that institutional investors want access to crypto markets through means that reflect established practices in finance.

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“EDX’s ability to attract new investors and partners despite industry headwinds demonstrates the strength of our platform and the demand for a safe and compliant cryptocurrency market,” he said. “We strive to bring the best of traditional finance to the cryptocurrency markets.”

As David Schwed, chief operating officer at Halborn Security, puts it, EDX has built the infrastructure that Wall Street banks will need as they enter the market. As countless B2B startups have discovered, it pays to be a trusted vendor for large corporations.

“They’re building the plumbing, the middleware, and the technology to kind of offer that,” he told Decrypt. “Something like this is now the right step for me to build. Because whoever wants to enter the space and expand the endpoints on the regulated side is going to need that kind of technology.”

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The first EDX transactions come just days after BlackRock, the world’s largest wealth manager, announced it would launch its first in the US Spot Bitcoin ETF. And while the Securities and Exchange Commission is cracking down on the industry’s standout players, Binance and Coinbase, EDX seems poised to help Wall Street jump into a morphing crypto battle.

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“The window to drive institutional demand for Bitcoin is closing,” said Michael Saylor, founder and CEO of MicroStrategy called in a tweet referencing EDX, one of the many crypto commentators who believe Wall Street is making a concerted push.

Unlike today’s leading cryptocurrency exchanges that offer their customers a variety of digital currencies, EDX offers investors four coins: Bitcoin, Ethereum Litecoin, and Bitcoin Cash. In terms of market capitalization, the tokens make up 67% of the entire crypto market CoinGecko.

The limited entries are probably intentional. SEC Chairman Gary Gensler said: “anything but bitcoin“is a security and the agency entangled Several of the industry’s leading altcoins filed lawsuits against Binance and Coinbase weeks ago.

Prior to EDX, Nazarali was global head of business development at Citadel Securities, a leading US market maker owned by entrepreneur Ken Griffin. Griffin is known to have defeated a group of people at a Sotheby’s auction organized under a DAO tried to buy a copy the US Constitution.

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