Bitcoin ETP issuer Fidelity funds new crypto marketplace as SEC goes after Binance, Coinbase

The new marketplace EDX Markets is also set to launch a new clearing house before the end of this year.
EDX Markets is being touted as the “first of its kind” for enabling compliant digital asset trading through intermediaries.
Given last year’s FTX debacle and the recent regulatory crackdown, VCs seem to have control in their own hands.

Cryptocurrency exchanges have been the center of attention since the end of 2022, owing to the FTX debacle. More recently, the regulatory crackdown on the two biggest exchanges in the world - Binance and Coinbase has spooked investors worldwide.

Venture Capitalists are capitalizing on this by bringing a new crypto marketplace that is compliant with regulatory rules.

Crypto enthusiasts launch new crypto exchange

Crypto has garnered not only the support of the people over the years but also of many financial institutions, which seem to be seeing its value now more than ever. However, the barrage of hurdles faced by existing crypto players has left investors counting losses but also fed these institutions a new idea.

Bitcoin ETP issuer Fidelity Management, for example, along with founding investors Charles Schwab, Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial, have launched a new crypto marketplace - EDX Markets. Touted to be the first of its kind digital asset marketplace, EDX Markets will be enabling digital asset trading through trusted intermediaries.

The crypto marketplace is also said to enable “complaint” trading bringing to light one of the bigger issues in the market at the moment - regulatory uncertainty. Earlier this month, the world’s two biggest crypto exchanges, Binance and Coinbase, were sued by the Securities and Exchange Commission (SEC) for violating Securities laws.

EDX Markets is sidestepping this hurdle by ensuring that its trading platform meets the current requirements. Nevertheless, even EDX Markets might not be completely safe from SEC’s rampant crackdowns since Coinbase, despite being compliant, is facing the same charges as Binance.

The new crypto marketplace also announced its new clearing house, EDX Clearing, following the latest funding round. Discussing the same, the CEO of EDX, Jamil Nazarali, stated,

“We are committed to bringing the best of traditional finance to cryptocurrency markets, with an infrastructure built by market experts to embed key institutional best practices. Looking ahead, EDX Clearing will be a major differentiator for EDX – and resolve an unmet need in the market – by enhancing competition and creating unparalleled operational efficiency through a single settlement process.”

At the time of launch, EDX Markets only supports the trading of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).

EDX Markets’ Traded products

Whether more cryptocurrencies will be later on is yet to be confirmed by EDX.

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