EDX Markets plans to step into the crypto space at a time when regulatory developments are heating up and the US SEC is cracking down hard on crypto firms.
The cryptocurrency landscape in the US is undergoing a seismic shift, and it is still too early to say whether this is for good or bad. as per latest reports From The Wall Street Journal, crypto exchange EDX Markets is planning to launch 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 cryptocurrency exchanges step into the market, it is wary of all the troubles on crypto exchanges FTX and Binance that surfaced last year.
The scope of EDX Markets’ operations is still unclear, however, the WSJ reports that the crypto exchange will not directly serve individual customers or handle customers’ digital assets.
Earlier this year, EDX Markets partnered with Paxos Standard to provide custody solutions. As we know, Paxos is regulated by the NYDFS and will put all EDXM client assets into a bankruptcy-remote trust. Following that, Jameel Nazrali, CEO of EDX Markets, said:
“With compliance and security as key differentiators of EDXM’s offering, we are thrilled to partner with Paxos to provide our investors with the gold standard in digital asset custody services. As well as MEMX’s technology powering the exchange, EDXM now has all the tools in place to make institutional-grade digital asset trading available to first-time investors.
America’s Changing Crypto Landscape
Recent developments suggest that despite strong regulatory action by the US SEC, large market players are still keen to enter the crypto space. Earlier this month, the US Securities and Exchange Commission (SEC) filed a lawsuit against two of the world’s largest cryptocurrency exchanges – Binance and Coinbase – to tighten their grip on the crypto space.[overthecryptospace[overthecryptospace
However, a week later, BlackRock, the world’s largest asset manager, floated 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 entered into an agreement to share information about trading, clearing and customer identities. This suggests that BlackRock is taking a careful approach to overcoming regulatory challenges and obtaining approval for its application. This is an important step towards bringing together traditional finance and blockchain technology.
It is 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 the traditional finance industry merging with the world of cryptocurrencies.
Reports suggest that Fidelity Investments will also make a similar move. This shows that the big players are still interested in crypto. Thus, crypto in the US is not dying anytime soon. Don Fitzpatrick, CEO of Soros Fund Management, said:
“Crypto is here to stay. What happened is obviously a blow. But right now I really think this is a huge opportunity for existing financial firms to really lead the way.”
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Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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