Fidelity, Citadel And Charles Schwab Team Up To Launch EDXM Crypto Exchange This Year End

A group of American financial services and related companies, including Charles Schwab, Loyalty digital assetsSequoia Capital, Citadel Securities, and others have joined forces to launch a cryptocurrency exchange later this year.

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

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

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“We will remove material conflicts of interest that plague 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 cleared and settled on the Blockchain. This will improve trade settlement speed, also increase efficiency at lower cost, and completely eliminate the need for an expensive bilateral settlement system, according to the statement.

Nazarali said: “We look forward to welcoming new participants to the exchange, which will stimulate continued trading in this important asset class, while creating a virtuous cycle of continuously improved liquidity and efficiency, supported by the state-of-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 retail and institutional users.

EDXM’s board said in the statement that crypto is a $1 trillion global asset class with more than 300 million participants, and millions more are taking an interest 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 safe entry point for crypto and serve as the exchange of choice for trading digital assets on one platform. designed and used by major financial institutions,” the statement said. EDXM board as said.

What is the position of EDXM backers regarding crypto?

In April 2022, Fidelity floated the idea of ​​launching Bitcoin (BTC) as an investment option in some of the 401(k) plans they administered. 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 US Department of Labor’s Employee Benefits Security Administration, said in an interview with The Wall Street Journal, that they “have serious concerns about what Fidelity has done ”.

“Cryptocurrencies can pose serious risks to retirement savings. The U.S. Department of Labor has serious concerns about plans and decisions to expose participants to direct investments in cryptocurrencies or related products, such as NFTs, coins, and crypto assets,” said said the newspaper quoting him.

Incidentally, the asset management arm of Charles Schwab launched its first exchange-traded fund (ETF) in July this year.

“We know there is considerable interest in this cryptocurrency space and we will seek to invest in companies and technologies working to provide access with a strong regulatory focus and in a secure environment,” said Mayura Hooper, spokesperson. by Charles Schwab, in July. , reported.

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Fidelity, Citadel And Charles Schwab Team Up To Launch EDXM Crypto Exchange This Year End

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