Backed by Wall Street consortium, what are the features of the cryptocurrency trading platform EDX Markets.

Original Title: "Who is EDX Markets, the Cryptocurrency Trading Platform Backed by Wall Street Consortium?"

Source: ODAILY Planet Daily

Crypto world is presenting a magical and diverse landscape.

 On the one hand, native crypto institutions such as Binance and Coinbase are facing fierce crackdowns from regulatory bodies such as the US Securities and Exchange Commission (SEC). On the other hand, the traditional financial world seems to be accelerating its entry into the industry. BlackRock was the first to apply for a BTC spot ETF, and rumors have since emerged that Fidelity may be considering acquiring Grayscale.

And just last night, a trading platform named EDX Markets announced two important updates, including upcoming launch and completed financing. Due to the impressive backing of the platform's endorsing institutions, the news quickly spread and gained significant attention from industry professionals, seen as another significant event of traditional forces entering the market.

September, Charles Schwab, Citadel Securities, Fidelity Investments, Sequoia Capital, and Paradigm announced that they will jointly launch EDX Markets. This is the first time that the name EDX Markets has entered the public eye, which was last year.

Regarding the core leadership team, the CEO of EDX Markets will be Jamil Nazarali, former Global Head of Business Development at Citadel Securities. The CTO and General Counsel positions will be held by Tony Acuña-Rohter, former Chief Technology Officer at ErisX, and David Forman, former General Counsel at Fidelity Digital Assets, respectively.

Yesterday evening, EDX Markets officially announced the launch of its digital asset market, which will provide trading services for four cryptocurrencies, including BTC, ETH, LTC, and BCH - it is worth noting that none of the aforementioned cryptocurrencies have been recognized as securities by the SEC.

Meanwhile, EDX Markets has also announced the completion of a new round of financing, with Miami International Holdings, DV Crypto, GTS, GSR Markets LTD, and HRT Technology participating. The new funds obtained from this round of financing will be used to support EDX Markets in continuing to develop its trading platform and consolidate its market leadership position.

According to the official description, EDX Markets aims to "facilitate secure and compliant digital asset trading through trusted intermediaries."

Unlike native cryptocurrency exchanges such as Binance and Coinbase, EDX Markets' services are more geared towards institutional clients, offering API-based trading access rather than traditional front-end user interfaces.

From a operational perspective, the most unique aspect of EDX Markets is that the exchange does not directly hold customer funds. Instead, it manages customer funds through third-party banks and professional custodians. Fund transfers do not go through EDX Markets, but are completed between the relevant service providers.

Under this mechanism, EDX Markets is primarily responsible for matching buy and sell orders. Based on the disclosed development plan, EDX Markets will launch a settlement system, EDX Clearing, later this year, aiming to provide customers with better quotes and higher processing efficiency. However, this will not affect the "non-custodial" basic operation mode of EDX Markets.

According to the analysis of Ram Ahluwalia, CEO of Lumida Wealth Management, the "non-custodial" model of EDX Markets is relatively more compliant with current regulatory requirements for cryptocurrency service providers, which minimizes conflicts of interest and prevents asset abuse. This model is expected to avoid tragedies that have occurred on FTX and Celsius, thus minimizing conflicts of interest and preventing asset abuse.

Although there is currently no information available on the operation of  , it is expected that the exchange plans to become a compliant ATS and eventually become a "national-level exchange" similar to NASDAQ or NYSE.

Ram added that EDX Markets is seeking to operate as an Alternative Trading System (ATS).

In short, EDX Markets, backed by multiple traditional financial giants, tells a completely different story from Binance, Coinbase, and others. Whether it can establish a foothold in the crypto world and even bring more funds and liquidity to this emerging market is still unknown.

But no matter what, the emergence of EDX Markets has once again proven the appeal of Crypto, which is naturally a positive for the industry's development. This morning, BTC rose to above $29,000, which is a positive feedback for the current market sentiment.

"Traditional forces entering the game" has been shouted for so many years, perhaps it is time to enter the acceleration period.

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