EDX Markets, a cryptocurrency exchange supported by renowned financial players including Citadel Securities, Fidelity Investments, and Charles Schwab, is set to launch today. The exchange plans to offer trading in four digital currencies, namely bitcoin, ether, litecoin, and bitcoin cash. EDX Markets was initially announced in September aimed at catering to brokers and investors interested in digital assets. The Wall Street Journal reported that the platform will officially launch nine months after the plans were unveiled.
EDX Markets differentiates itself from traditional cryptocurrency exchanges by using conventional finance standards while operating as a “non-custodial” exchange. It is not responsible for handling customers’ digital assets, but rather provides a platform for firms to execute trades between cryptocurrencies and fiat currencies. The transfer of crypto and cash takes place outside the EDX platform, but a clearinghouse to facilitate trade settlement is planned for later this year. To hold customer assets, a third-party bank and a crypto custodian will be utilized.
EDX will not directly serve individual investors but anticipates that retail brokerages will redirect investors’ orders to buy and sell cryptocurrencies on its platform, similar to the stock market. This non-custodial approach intends to alleviate concerns over security and potential misuse of customer funds and avoid any conflicts of interest.