What do the six EDX partners do?

Author: Logicrw, Jaleel, BlockBeats

Yesterday evening, EDX Markets, a new cryptocurrency trading platform, announced its official launch and completed a new round of fundraising. The main reason that caused a stir is that this trading platform has received support from financial giants in the TradFi field, such as Citadel Securities, Fidelity, and Charles Schwab.

This announcement seems to have caused a huge ripple in the market. This morning, with the launch of the EDX Markets platform, the four mainstream cryptocurrencies that are not recognized as securities by the SEC - Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH) - have all seen significant increases. Among them, Bitcoin broke through the $29,000 mark in a short period of time, with a 24-hour increase of 6.82%. Ethereum also saw a 24-hour increase of 3.41%, while BCH was even more astonishing, with a 24-hour increase of 24.3%.

In this new round of financing, EDX Markets has attracted a group of strategic investors in the financial trading industry. These include Miami International Holdings (MIH), DV Crypto, GTS, GSR Markets LTD, and HRT Technology, among others. The most prominent among them is Miami International Holdings.

New investor: Miami International Holdings

Miami occupies an important position in the global Bitcoin and cryptocurrency ecosystem due to its favorable policy environment. Well-known cryptocurrency companies such as FTX US and MoonPay have established their headquarters here. Although Miami International Holdings (MIH) has "Miami" in its name, its headquarters are actually located in New Jersey (with only offices in Miami), and it is one of the major options exchanges in the United States.

According to the official website, Miami International Holdings (MIH) was founded in 2007 and primarily operates global financial trading platforms and execution services. The company owns multiple US stock, equity options, and commodity exchanges, including the MIAX Exchange Group (consisting of MIAX, MIAX Pearl, MIAX Pearl Equities, and MIAX Emerald) as well as the Minneapolis Grain Exchange (MGEX). Additionally, MIH has a subsidiary called Miami International Technologies, which focuses on selling and licensing trading technology developed by the MIAX Exchange Group.

In May of this year, the Miami International Securities Exchange (MIAX) announced the completion of its acquisition of LedgerX, a derivative trading platform owned by FTX. This move is seen as an important milestone for MIAX as it ventures into digital assets from traditional finance. LedgerX was one of the assets approved for sale by the court in January of this year and was acquired by FTX US in August 2021. LedgerX is a trading and clearing platform regulated by the US Commodity Futures Trading Commission (CFTC) and is registered with the CFTC as a designated contract market (DCM), a derivatives clearing organization (DCO), and a swap execution facility (SEF).

However, even earlier, MIAX had the idea of launching cryptocurrency derivatives. According to the CoinCarp website, Miami International Holdings (MIH) participated in Lukka's $110 million Series E financing in January 2022. In June, MIAX announced a strategic alliance with Lukka to jointly develop and launch a proprietary suite of cryptocurrency derivatives based on Lukka data.

In the strategic planning of Miami International Holdings, the role of digital assets and cryptocurrencies is becoming increasingly prominent. As the cryptocurrency market matures, various financial trading platforms are also constantly seeking innovative and development opportunities related to it. For MIH, investing in the new round of financing of EDXM is just another step in its exploration of digital assets. In the future, we can expect to see more attempts by TradFi giants like this to combine digital assets with traditional financial products.

Supplier and Partner

Aside from the significant attention received by the new investor, Miami International Holdings, the six suppliers and partners listed on the EDX Markets website have also sparked community discussion. They are: stock trading platform MEMX, crypto custody firm Anchorage Digital, crypto index provider CF Benchmarks, trading software developer DELTIX, crypto institutional trading platform TALOS, and crypto hedge fund Elwood. BlockBeats

Stock trading platform MEMX

Members Exchange (MEMX) is an independent, technology-driven stock trading platform. The trading platform was founded in early 2019 by Bank of America Securities, Jane Street, Citadel LLC, E-Trade, Fidelity Investments, Morgan Stanley, TD Ameritrade, UBS Group, and Virtu Financial. It competes with major stock trading platforms such as the New York Stock Exchange, Nasdaq, and Chicago Options Exchange.

Since its inception, MEMX has received investments from nine other financial services companies, including BlackRock, Citigroup, JPMorgan Chase, Goldman Sachs, State Street Bank, and Jane Street Capital. In May 2020, MEMX received approval from the US Securities and Exchange Commission to operate as a national securities exchange. In March of this year, MEMX announced the completion of a strategic financing led by Optiver, a global leading market maker, to support the launch of the MEMX Options options trading platform in August.

Encryption Custody Agency Anchorage Digital

Anchorage Digital is a compliant cryptocurrency platform founded in 2017. Early investors include a16z and Blockchain Capital. In 2019, Visa became an investor in Anchorage Digital and utilized the company's cryptocurrency payment services. Anchorage Digital Bank was awarded a banking license by the Currency Comptroller in 2021, becoming the first federally chartered cryptocurrency bank in the United States.

Anchorage Digital provides comprehensive financial services and infrastructure solutions for institutions. It is a digital asset custodian for banks, venture capital firms, fintech companies, and governments. Anchorage Digital uses biometric authentication and hardware security modules to store and protect cryptocurrencies. In December 2021, Anchorage Digital announced a $350 million funding round, with a post-money valuation of $3 billion.

Encryption index provider CF Benchmarks

As a wholly-owned subsidiary of the cryptocurrency exchange Kraken, CF Benchmarks is a digital asset index service provider authorized and regulated by the UK Financial Conduct Authority (FCA). CF Benchmarks covers over 40 digital assets, with its flagship product being the CME CF Bitcoin Reference Rate (BRR), used to settle bitcoin-dollar futures contracts listed by the CME Group, as well as a valuation benchmark for bitcoin by asset management companies worldwide. In September of last year, BlackRock announced the use of CF Benchmarks' bitcoin index pricing product to launch its bitcoin product.

Trading software developer DELTIX

Deltix was founded in 2005 by a group of computer scientists and mathematicians. It is a company that provides quantitative research software and services for the financial industry. The company specializes in applying complex mathematics to large data sets, helping clients gain actionable insights and engage in "smart trading". Deltix's solutions typically involve custom deployments using its advanced product components in collaboration with clients.

Deltix's clients include both buyers and sellers. On the buyer side, Deltix partners with hedge funds, commodity trading advisors, professional trading firms, investment management companies, and banks. On the seller side, Deltix provides algorithmic execution solutions for stock, futures, and forex orders to banks and brokers. Deltix's solutions are also used by over-the-counter trading platforms and cryptocurrency exchanges.

Encryption Agency Trading Platform TALOS

TALOS, headquartered in New York, was founded in 2018 to provide technology support for financial institutions in digital asset trading. Its platform offers liquidity access, direct market access, price discovery, automated execution, clearing, and settlement. Talos provides institutional investors with the best trading solutions, and its products help clients view trading platform and market maker prices in one place, and issue instructions for all stages of trading - even complex algorithmic stages.

Talos received a $40 million Series A funding led by a16z in May 2021, and completed a $105 million Series B funding at a valuation of $1.25 billion in May 2022.

Encryption technology company Elwood Technologies

Elwood Technologies is a cryptocurrency trading platform founded by renowned British hedge fund manager Alan Howard. The company raised $70 million in a Series A funding round led by Goldman Sachs and Dawn Capital in May of last year. Elwood provides a technology platform similar to Bloomberg Terminal or BlackRock Aladdin investment portfolio management system, aimed at integrating with existing trading software of financial institutions to help them manage and trade cryptocurrency investment portfolios. In February of last year, Elwood Technologies announced a strategic integration with Bloomberg, connecting its software to the order management system of US trading platforms.

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