Home CryptocurrencyAltcoin Wall Street is behind setting up an on-chain settlement digital asset exchange

Wall Street is behind setting up an on-chain settlement digital asset exchange

by SuperiorInvest

Major financial firms have come together to form EDX Markets (EDXM), a new exchange that will trade digital assets through trusted intermediaries. The exchange will provide services to institutional and retail investors.

There will be a new exchange backed up Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial, according to an announcement released Tuesday. Jamil Nazarali has moved from Citadel Securities, where he was global head of business development, to the exchange as its CEO.

The EDXM Board of Directors, composed of representatives of the founding members, stated:

“Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand for millions more. […] Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high standards of compliance and security.”

Galaxy Digital CEO Mike Novogratz recently suggested that Fidelity enter into retail cryptocurrency trading. Citadel Securities founder Ken Griffin has been a vocal critic of cryptocurrencies in tbut has more receive digital assets in the last months.

Related: Charles Schwab’s Asset Management Division Launches ETF Linked to Cryptocurrencies

EDXM will settle trades on the blockchain through a network of digital custodians. In a statement, it claimed that the exchange would “remove the significant conflicts of interest that affect existing cryptocurrency exchanges by separating responsibility for the operation of the exchange from the entities that trade on it.”

In addition, the exchange promised a “highly liquid cryptocurrency ecosystem that aggregates liquidity from multiple market makers to reduce spreads and improve transparency.” Paradigm recently partnered with FTX provide spread trading of eight cryptocurrencies.

The exchange will operate on technology developed by Members Exchange (MEMX), an exchange founded by many of the same founding firms in 2019.

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