Several financial firms, including Fidelity Investments, Citadel Securities and Charles Schwab Corporation, announced on Tuesday that the consortium of companies plans to launch a cryptocurrency exchange called EDX Markets. Companies like Paradigm, Sequoia Capital and Virtu Financial are reportedly backing the new crypto trading platform. The story was first reported in the first week of June, but the companies this week confirmed the creation of the new crypto exchange and appointed a CEO.
EDX Markets plans to ‘eliminate significant conflicts of interest affecting existing cryptocurrency exchanges’.
In a press release published on Tuesday, Fidelity Investments, Charles Schwab, and Citadel Securities announced plans to launch a financial heavyweight crypto exchange. The exchange will be called EDX Markets and former Citadel executive Jameel Nazarali will be the CEO of the platform.
The EDX launch date is currently unconfirmed, but the trading engine will be powered by MEMX, otherwise known as the Member Exchange. The Wall Street Journal reports that high-speed trading firm Virtu Financial and venture firms Paradigm and Sequoia Capital are behind EDX’s upcoming startup.
EDX caters to institutional and retail investors and is different from traditional crypto exchanges today. The EDX press release published on Tuesday’s notes aims to “avoid significant conflicts of interest that affect the current cryptocurrency exchanges”.
Loyalty has been into cryptocurrencies and bitcoin for some time, but Citadel’s Ken Griffin is skeptical. In the year In March 2022, Griffin’s views on crypto assets changed, and he cited the huge security concerns of his plans to move into crypto. Following Griffin’s comments, months later in June, it was reported that Citadel, Charles Schwab and Fidelity would launch an exchange.
“We know there is a strong demand in this cryptocurrency space and we want to invest in organizations and technologies that work to provide access in a tightly regulated and secure environment,” said Charles Schwab spokeswoman Mayura Hooper.
In late July, the Charles Schwab Asset Management Fund launched its first crypto-related exchange-traded fund (ETF). In the midst of a crypto winter, when the crypto industry is laying off thousands of workers, Fidelity said in June that it is hiring for individuals who can manage crypto trading and digital currency protection services.
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