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Crypto exchange EDX Markets launches with institutional backing

Jun 20, 2023
Illustration of a crypto block with an image of a one hundred dollar bill on one side.

Illustration: Gabriella Turrisi/Axios

EDX Markets, a noncustodial digital asset marketplace for institutional investors, has launched with a new round of funding from a group of proprietary trading firms.

Why it matters: Despite FTX’s collapse and recent regulatory pressure from the SEC, institutional investors are still looking for trusted trading partners for digital assets.

Details: EDX Markets' latest financing includes investment from Miami International Holdings, along with affiliates of proprietary trading firms DV Trading, GTS, GSR and Hudson River Trading.

  • Previous investors include Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial.

How it works: EDX Markets has taken a contrarian approach to centralized crypto exchanges like Binance and Coinbase by sidestepping retail investors and avoiding asset custody.

  • It doesn’t directly touch any of its customers’ digital assets, instead operating a marketplace where institutional investors can agree on prices and execute trades.
  • The firm supports four digital assets (bitcoin, ether, litecoin and bitcoin cash), steering clear of those identified as securities by the SEC.

Between the lines: EDX has begun executing trades with certain customers, with market-maker Citadel Securities among them.

Of note: Before founding EDX, chief executive Jamil Nazarali was a longtime Citadel executive.

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