EDX Markets launches 'non-custodial' cryptocurrency trading

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EDX Markets launches 'non-custodial' cryptocurrency trading

EDX Markets, a cryptocurrency platform supported by Charles Schwab, Fidelity and Ken Griffin's Citadel Securities, launched trading for bitcoin, ether, litecoin and bitcoin cash.

The platform of EDX has avoided the '' crypto asset securities '' referred to in recent lawsuits by the SEC against Binance and Coinbase. EDX, situated as a 'non-custodial' exchange, aims to serve the needs of major financial institutions seeking crypto exposure but harboring concerns about centralized crypto service providers.

A non-custodial platform means it doesn't hold its customers' crypto-tokens and instead, it ensures that client assets will be held in third-party banks that act as custodians, removing concerns regarding potential fund misappropriation.

Unless they choose a self-custody Blockchain wallet, Coinbase serves as an intermediary for their customer's crypto. Although it's simple to start trading crypto with an exchange that holds your tokens, risks include losing your assets if the exchange is hacked or lower profits due to custodial fees.

The trade is a platform that connects a network of firms for executing and settling trades between crypto assets and fiat currencies. It does not help settle those trades just yet, Mr. Sanders said in a statement. EDX is planning to launch a clearinghouse business later this year, which will enable it to carry out settlements.

The exchange's launch comes shortly after BlackRock's application for the first spot bitcoin exchange-traded fund in the United States, signaling a sustained institutional interest in the long-term crypto market despite recent industry setbacks and regulatory concerns.

EDX has also completed a second round of funding, attracting new investors like Miami International Holdings and affiliates ofproprietary trading firms DV Trading, GTS, GSR, and Hudson River Trading.