2023-06-20 07:47:08 ET
EDX, a new non-custodial cryptocurrency exchange, has gone live and is already executing orders for its clients. According to the Wall Street Journal, the company will make the official announcement about its operations later on Tuesday.
EDX is a company backed by some of the biggest players in Wall Street like Citadel Securities, Fidelity, and Schwab. Citadel Securities is the biggest market-maker in the United States while Citadel and Fidelity are large players in the brokerage industry.
EDX Markets is significantly different than other crypto exchanges like Coinbase and Binance. For one, it is offering cryptocurrencies like Bitcoin , Ether, Litecoin , and Bitcoin Cash. It has avoided the thousands of crypto tokens that the SEC believes are financial securities.
The other difference is that it is a non-custodial company, meaning that it does not handle customer funds directly. Instead., it is a marketplace where people can buy and sell cryptocurrencies amongst themselves. After agreeing, the company’s technology facilitates the movement of funds. EDX also plans to launch a clearinghouse later this year.
EDX is launching at a difficult time for the crypto market. The SEC has already sued companies like Coinbase and Binance, accusing them of offering illegal products in the US. At the same time, most cryptocurrencies are struggling to retest their all-time highs, which they hit in 2021.
By using a non-custodial approach, EDX aims to avoid the risks associated with holding customer funds. It will also avoid the risk of commingling customer funds, which played a part in the collapse of FTX. The SEC has accused Binance of commingling customer funds as well.
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