Financial institutions support EDX markets’ digital asset exchange
The launch of EDX Markets (EDXM), a first-of-its-kind exchange that will enable safe and compliant trading of digital assets through dependable intermediaries, was announced by a group of top broker-dealers, global market makers, and venture capital organizations. To promote secure, quick, and effective cryptocurrency trading for American regular and institutional investors, the new exchange will integrate tried-and-true technology from MEMX with best practices from traditional financial markets and tighter spreads made possible by increased liquidity.
With the help of EDXM, a highly liquid cryptocurrency environment will be made possible, one that pools liquidity from several market makers to narrow spreads and boost transparency. Investors could benefit from higher prices than those provided by current cryptocurrency exchanges because of this dedication to price discovery and efficiency. Leading companies in the financial sector, including Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial, support EDXM’s operation as a totally autonomous business. Over time, it is anticipated that more market players will collaborate with EDXM.
The technology foundation for EDXM will be provided by MEMX, an avant-garde, customer-focused market operator formed in 2019. The needs of ordinary investors and the biggest and most advanced financial institutions in the world will be met by EDXM thanks to its scalable exchange architecture, which MEMX is specifically designed to extend across various markets.
Trades will be netted and resolved on the blockchain for better speed and efficiency at a lower cost, doing away with the need for pricey bilateral settlement by utilizing a network of carefully chosen digital custodians to secure assets. Additionally, critical guiding concepts for EDXM are customer security and legal compliance. By isolating responsibilities for running the exchange from the businesses trading on it, it will significantly eliminate severe conflicts of interest that beset existing bitcoin exchanges.
What to expect soon?
In the upcoming months, EDXM will continue to add senior leadership positions to its executive team. With ErisX being acquired by Cboe Global Markets, Tony Acua-Rohter, who previously held the position of Chief Technology Officer at ErisX, has joined as CTO. David Forman, formerly the Chief Legal Officer at Fidelity Brokerage Services and General Counsel for Fidelity Digital AssetsSM, serves as General Counsel. Jamil Nazarali, formerly the Global Head of Business Development at Citadel Securities, serves as the company’s Chief Executive Officer. New personnel from the cryptocurrency and conventional financial services industries will join them. The Board of Directors for EDXM is made up of members from the founding member companies.
Mr. Nazarali stated, “It is an honor to lead EDXM as we develop this innovative new trading ecosystem. I am appreciative of the involvement, support, and direction of our consortium members. We look forward to welcoming more participants to the exchange, encouraging ongoing trade in this important asset class, and providing a positive feedback loop of continuously improved liquidity and efficiency supported by MEMX’s cutting-edge technology.
In a statement, the Board of Directors of EDXM stated that “Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. A platform is necessary to satisfy institutional investors’ and retail traders’ needs while maintaining high compliance and security standards. MEMX-backed digital infrastructure would remove organizational and technological impediments, making EDXM the go-to exchange for trading digital assets on a platform created for and utilized by top financial institutions. This will make EDXM a secure place to start investing in cryptocurrencies. This novice is going to bring some change to the financial industry as a whole.
The CEO of MEMX, Jonathan Kellner, stated, “We are thrilled to join with EDXM on this significant and cutting-edge endeavor. As we expand our scalable market technology to serve different asset classes and market operators, this begins a new chapter for MEMX.