Wall Street's "new darling" EDX Markets is online, and the entry of traditional capital has entered an accelerated period?

The world of Crypto is showing a magical scene of difference.

On the one hand, Crypto-native institutions such as Binance and Coinbase are facing crazy attacks from regulators such as the US Securities and Exchange Commission (SEC). On the other hand, the traditional financial world seems to have accelerated the pace of entry. Spot ETFs, and then rumors that Fidelity may be considering acquiring Grayscale (Grayscale).

And just yesterday evening, an exchange named EDX Markets successively announced two important developments, such as the upcoming launch and the completion of financing. Since the endorsement institution of the exchange is too bright, as the relevant announcements spread, its attention The speed is also directly full, and is regarded by many people in the industry as another symbolic event of the entry of traditional forces.

In September, Charles Schwab, Citadel Securities, Fidelity Investments, Sequoia Capital, Paradigm and other companies announced that they would jointly launch EDX Markets. **The name EDX Markets first entered the public eye last year

In terms of core leadership, the CEO of EDX Markets will be Jamil Nazarali, former head of global business development at Citadel Securities, and the CTO and general counsel will be Tony Acuña-Rohter, former chief technology officer of ErisX, and former general manager of Fidelity Digital Assets. Legal Counsel David Forman served.

Last night, EDX Markets has officially announced the launch of its digital asset market, which will provide trading services for four cryptocurrencies such as BTC, ETH, LTC and BCH. It is worth mentioning that none of the above four cryptocurrencies have been identified as securities.

At the same time, EDX Markets also announced the completion of a new round of financing. Miami International Holdings, DV Crypto, GTS, GSR Markets LTD and HRT Technology participated in the investment. The new funds obtained in this round of financing will be used to support EDX Markets continues to develop its trading platform and strengthen its market leadership.

According to the official description, EDX Markets aims to

"Achieving safe and compliant digital asset transactions through trusted intermediaries"

。

Unlike native exchanges in the Crypto field such as Binance and Coinbase, **EDX Markets' services are more biased towards institutional customers, and it will provide API-based transaction access instead of traditional front-end user interfaces. **

From the perspective of operating mechanism, the biggest special feature of EDX Markets is that the exchange does not directly host customer funds, but manages customer funds through third-party banks and professional custodian service providers, and the transfer of funds will not "Handling" EDX Markets will only be done between relevant service providers.

Under this mechanism, EDX Markets is mainly responsible for the matching between buying and selling orders. Judging from the disclosed development plan, EDX Markets will launch the settlement system EDX Clearing later this year, aiming to provide customers with better quotations and higher processing efficiency, but this will not affect EDX Markets' very The basic operating model of "hosting".

According to the analysis of Ram Ahluwalia, CEO of Lumida Wealth Management, EDX Markets' "non-custodial" model is relatively more in line with the current regulatory compliance requirements for cryptocurrency service providers to minimize conflicts of interest and prevent asset abuse. Because this model is expected to avoid the tragedies that have happened on FTX and Celsius, thereby minimizing conflicts of interest and preventing asset abuse.

Although there is no relevant information about the operation, it is expected that the direction of the exchange's planned development is to become a compliant ATS, and eventually become an exchange similar to Nasdaq or the New York Stock Exchange.

"National Exchange"

。

Ram added that EDX Markets seeks to serve as an alternative trading system (Alternative Trading)

All in all, EDX Markets, which is backed by many traditional financial giants, tells a completely different set of narratives from Binance, Coinbase, etc., whether it can gain a firm foothold in the Crypto world, and even bring more opportunities to this emerging market. Funding and liquidity are still unknown for the time being.

But in any case, the emergence of EDX Markets has once again proved the attractiveness of Crypto, which is naturally bullish for the development of the industry. This morning, BTC once rose above $29,000, which is also a positive feedback of the current market sentiment.

"Traditional forces enter the game"

The slogan has been shouted for so many years, perhaps it is time to enter the acceleration period.