With EDX Markets, another provider is heading into the market for crypto exchanges. Unlike Coinbase & Co., however, CEO Jamil Nazarali wants to enable investors to make faster transactions at lower costs – and promises extensive expertise both in the traditional financial system and in the market for Bitcoin and the like.
EDX Markets wants to conquer the crypto market
A new star has appeared in the crypto sky: With the EDX Markets (EDXM) trading platform, another provider for Bitcoin & Co. transactions has joined the competitors Coinbase and Binance. “EDXM is a new platform for trading cryptocurrencies and other digital assets that combine proven technology with the best practices of traditional financial markets,” the company promises on its website. “By bringing together leading financial firms – including retail brokers, global market makers, and venture capital firms – EDXM ensures greater access, greater transparency, greater security, and compliant trading of digital assets.”
Experts from the finance and crypto industry
The trading center wants to transfer its expertise from traditional finance to the world of cryptocurrencies. EDX Markets is still a young company, but big names in the financial sector have been secured for the upcoming start of the stock exchange. For example, Jamil Nazarali, who previously served as global head of business development at Citadel Securities, is at the helm of EDXM as CEO. CTO Tony Acuña-Rohter also previously held his new position at ErisX. In addition, additional colleagues have been hired who previously worked in either the crypto industry or the financial services sector, according to a press release.
EDXM promises a “highly liquid cryptocurrency ecosystem”
Compared to existing crypto exchanges, EDX Markets wants to offer investors more attractive investments. This is said to be guaranteed by a “highly liquid cryptocurrency ecosystem” that “aggregates liquidity from multiple market makers to reduce spreads and improve transparency.” By working with its partners, EDX Markets aims to provide crypto investors with faster transactions at a lower cost than would be the case with competitors.
Crème de la crème of the financial sector as a partner
While the crypto novice is working with financial industry giants such as Charles Schwab, Citadel, and Fidelity, as the announcement states, EDX Markets operates independently as a standalone company. The technology of the new crypto exchange also comes from the independent stock trading platform Members Exchange (MEMX). “We are excited to be collaborating with EDXM on this important and innovative project,” said MEMX CEO Jonathan Kellner. “This marks a new chapter for MEMX as we bring our scalable market technology to other asset classes and market operators.”
Only a few cryptocurrencies are tradable at the start
At the start of the platform, however, they only want to offer “a handful of tokens”, as Nazarali recently explained to “CoinDesk”. “We will be very conservative in terms of the tokens we trade,” he said in an interview. By not trading in tokens that could be declared as securities by the US Securities and Exchange Commission (SEC), they want to protect themselves from official supervision. Bitcoin will definitely be one of the cryptocurrencies in the EDXM portfolio, Nazarali promised.
No direct access for private investors
According to the press release, both institutional investors and small investors can trade on the Members Exchange, but private investors have to do without crypto trading via EDX Markets. Nevertheless, cooperation with institutional partners is planned, which in turn can give their private customers access to cryptocurrencies traded on the platform. “The reality is you’re going to have an intermediary one way or the other,” the EDXM CEO pointed out. he. “We will take the best price in the market from market makers and match it to incoming client orders.”
“Great development for the market”
However, Nazarali is not critical of the fact that other major Wall Street market players are currently also pushing into the crypto market in order to also get a piece of the pie. “This is a great development for the market,” said the CEO. “It will attract more institutional players and we welcome that.” He was reacting to the news that the US tech exchange NASDAQ announced that it would offer custody services for digital assets to institutional customers. Due to the business concept of the trading place, however, they do not see any competition with their own product.
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