Fidelity, Charles Schwab and Citadel Securities launch crypto exchange
Financial giants Charles Schwab, Citadel Securities and Fidelity Digital Assets have partnered to launch a bitcoin and cryptocurrency exchange. According to a press release, the trio has joined forces to form a cryptocurrency exchange named EDX Markets (EDXM).
Important takeaways
- Fidelity, Charles Schwab, Citadel and Fidelity have teamed up to launch the first of its kind cryptocurrency exchange.
- The exchange will be named EDX Markets and will be led by Jamil Nazarali, a former senior executive at Citadel Securities.
- EDXM will be backed by businesses including Citadel Securities, Paradigm, Sequoia Capital and Virtu Financial.
A first-of-its-kind exchange
The exchange is said to be the first of its kind to launch with a promise to be a “safer, faster and more efficient cryptocurrency trading.”
To achieve its goal, EDXM will rely on the technology built by The Member Exchange (MEMX), a stock exchange, to scale its operations to serve retail and institutional investors in multiple markets. The exchange will also be helped by ventures including Citadel Securities, Paradigm, Sequoia Capital and Virtu Financial.
“We look forward to welcoming more participants to the exchange, who will drive ongoing trading in this important asset class while creating a virtuous cycle of continuously improving liquidity and efficiency supported by MEMX’s cutting-edge technology,” said Jamil Nazarali, CEO of EDX Markets and former global head of business development at Citadel Securities.
Market target for EDXM
The exchange plans to eliminate expensive bilateral settlements by netting and settling trades through its blockchain network. Furthermore, down the line, EDXM’s board discussed the crypto market value that unlocks the demand of millions of market participants, saying “Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.”
Prior to this launch, Galaxy Digital CEO Mike Novogratz had hinted that Fidelity was launching a crypto firm. Earlier this year, Fidelity pioneered offering bitcoin as a 401(k) investment option, leading the way in gradual crypto adoption.
The bottom line
Despite adverse market conditions and regulatory pressure, the traditional financial sector is shifting towards integrating crypto as part of its operations. It shows that the downturn in the market has not deterred them from adopting crypto.
