Introducing EDX Markets:
EDX Markets, a new cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, has quietly entered the market, targeting brokers and investors interested in digital assets.
Operating as a noncustodial platform, EDX Markets acts as a marketplace for executing trades without directly handling customers’ digital assets. This approach aims to eliminate risks associated with previous incidents of bank-run failures in the industry.
This move comes amid ongoing legal actions against Coinbase and Binance by the U.S. Securities and Exchange Commission (SEC).
Read about the Coinbase lawsuit here.
Learn about the Binance lawsuit here.
Despite increased regulatory scrutiny, major institutions view this as an opportunity to capture market share, benefiting from close ties with regulators and greater effectiveness in complying with regulations due to their scale.
BlackRock, the world’s largest asset management firm with around $9 trillion under management, recently filed for a spot Bitcoin ETF, indicating significant institutional interest in expanding into the sector.
Read about BlackRock’s spot BTC ETF application here.
Despite SEC Chairman Gary Gensler’s classification of Bitcoin as a commodity rather than a security, institutions like BlackRock see it as the safest cryptocurrency to offer products for, although the newly announced EDX exchange will feature other cryptocurrencies.
In summary, the emergence of EDX Markets indicates that major traditional finance institutions are paying attention to bitcoin, not just BlackRock. Regulators have created a fresh opportunity for institutions to enter the market, heating up the competition for the remaining supply of Bitcoin.
Deutsche Bank’s interest in the space was also reported recently.
Excitement is building for the remaining supply of Bitcoin!
