Fidelity, Citadel and Charles Schwab Team Up to Launch EDXM Crypto Exchange This Year

A group of U.S. financial services and related companies, including Charles Schwab, Digital Assets for LoyaltySequoia Capital, Citadel Securities and others have joined forces to create a cryptocurrency change later this year.

It will be called EDX Markets (EDXM), and Jamil Nazarali, former global head of business development, Citadel Securities, will serve as CEO, EDX announced in a press release.

The statement further states that EDXM will be a fully independent entity and will strive for better price discovery than that offered by existing cryptocurrency exchanges.

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“We will remove material conflicts of interest plaguing existing cryptocurrency exchanges by separating responsibility for operating the exchange from entities trading on it,” EDX said in the press release.

EDXM will use a network of selected digital custodians to protect client assets, and all transactions will be settled and settled on the Blockchain. This will improve trade settlement speed, also increase efficiency at a lower cost, and completely eliminate the need for an expensive bilateral settlement system, the release said.

Nazarali said: “We look forward to welcoming new participants to the exchange, which will drive continued trading in this important asset class, while creating a positive cycle of continuously improved liquidity and efficiency, supported by the state-of-the-art. the-art technology from MEMX”.

What Will Power EDXM Crypto Exchange?

A company founded in 2019 called MEMX will power this new crypto exchange. EDXM further stated that their crypto exchange will serve both private and institutional users.

The board of EDXM said in the statement that crypto is a $1 trillion global asset class with more than 300 million participants, and millions more are interested in it.

“Meeting this demand requires a platform that can meet the needs of retail traders and institutional investors with high compliance and security standards. With a MEMX-supported digital infrastructure that eliminates technological and organizational bottlenecks, EDXM will be a secure entry point for crypto and serve as the exchange of choice for trading digital assets on a single platform, designed and used by major financial institutions,” the said. statement .EDXM board as said.

What is the position of EDXM backers regarding crypto?

In April 2022, Fidelity put forward the idea of ​​launching Bitcoin (BTC) as an investment option in some of the 401(k) plans they operated. However, the choice to add BTC in 401(k) the plans belonged to the employers and they had to do their own due diligence and get the necessary approvals before they could offer that.

Ali Khawar, acting assistant secretary for the Employee Benefits Security Administration at the U.S. Department of Labor, said in an interview with The Wall Street Journal that they have “grave concerns about what Fidelity has done.”

“Cryptocurrencies can pose serious risks to retirement savings. The US Department of Labor is deeply concerned about plans and decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins and crypto assets,” the paper said. quoted him.

By the way, Charles Schwab’s asset management arm launched its first exchange-traded fund (ETF) in July this year.

“We know there is significant interest in this cryptocurrency space and we will seek to invest in companies and technologies that work to provide access with a strong focus on regulation and in a secure environment,” said Mayura Hooper, spokesperson for Charles Schwab. , in July. reported.

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