Wall Street and its major brokers have announced the opening of their own crypto exchange platform while opening up real competition to the industry.
A crypto exchange platform for finance coming soon?
Crypto exchanges, especially the more reputable ones, are doing their best to please the authorities. Between the registrations and the end of certain services to comply with regulations, their actions are numerous to remain in the good graces of traditional finance. Wall Street would nevertheless have decided to measure itself against the industry by capitalizing on all the problems caused by the crypto winter.
Indeed, the major brokers of the US stock market are said to have come together to create their own crypto exchange platform. Called EDX Markets, it is said to be aimed at both individuals and institutions in the United States. The transactions would be performed on the blockchain, while the rest of the operations would be entrusted to the MEMX technology, which is already used on the exchange. Thus, users can invest in crypto and trade within a framework managed by traditional finance.
EDX Markets would also reap the benefits of the crypto winter. Security and liquidity issues continue to plague the sector. The trading platform created by Wall Street aims to capitalize on these issues.
The new exchange will combine MEMX’s proven technology with the best practices of traditional financial markets and tighter spreads enabled by greater liquidity. […] Customer safety and regulatory compliance are also core fundamentals for EDXM. This will eliminate significant conflicts of interest that plague existing cryptocurrency exchanges by separating the responsibility for operating the exchange from the entities trading on it.
Excerpt from the press release announcing the launch of EDX Markets.
The exchange opens up competition for cryptocurrencies
The press release announcing the project bases its argument on solving problems caused by current crypto exchange platforms. However, it could be that Wall Street just wants to ride the popularity of cryptocurrencies. As banks begin to take an interest in it, traditional financing may feel the need to meet the demand. EDX Markets can also be an attempt to regain control of an alternative economy that is attracting more and more users.
From a more enthusiastic perspective, the exchange could be forced to get into crypto in light of the plethora of countries using them. Let’s think in particular of Russia, which now seems to favor them for trade.
Anyway, the new crypto exchange platform opened by Wall Street brokers could have two effects. It could compete with the greats of the industry and generate more institutional investors interested in profits. It can also interest more retail investors in cryptocurrencies by providing them with a more familiar environment. Time will tell which side the public will have taken.
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