Some of the biggest names in finance are joining together to create the EDXM exchange, citing a pent-up demand for crypto assets and the need for compliance and security.
Major financial firms have teamed up to create EDX Markets (EDXM), a new exchange that will trade digital assets through trusted intermediaries. The exchange will provide services to institutional and retail investors.
The new exchange will be backed by Charles Schwab, Citadel Securities, Fidelity Digital Assets, Paradigm, Sequoia Capital and Virtu Financial, according to an announcement released on 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, made up of representatives of the founding members, commented:
“Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more. […] Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.” Galaxy Digital CEO Mike Novogratz recently hinted that Fidelity would enter retail cryptocurrency trading. Citadel Securities founder Ken Griffin has been a vocal critic of crypto in the pastbut has become more accepting of digital assets in recent months.
Related: Charles Schwab's asset management arm launches crypto-linked ETF
EDXM will settle trades on a blockchain through a network of digital custodians. It claimed in a statement that the exchange will “remove significant conflicts of interest that affect existing cryptocurrency exchanges by separating responsibility for operating the exchange from the entities trading 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 to provide spreads trading of eight cryptocurrencies.
This will be nothing more than a direct replica of the expensive, outdated, slow and incompetent bank accounts of today. I can see it now. You get your bank statement and it's riddled with fees... and your interest rate if any, will be even lower than it is today because now they will be providing access to crypto products so, in their view it may even justify a standard monthly fee like a Blockbuster Video account. "Gimme $29.99 a month so I can take your money and invest it so I can earn upwards of 27% lending it via predatory loans and credit cards and I'll gladly pay you .002% APR sucker"! No thank you. The current stage of world finance cannot be corrected by taking the solution and retrofitting it into the existing failed system. I look forward to the day when true crypto banks such as Scallop can take center stage so we can put an end to the ridiculous lop-sided ways of finance and banking as it is done today. These days the blockchain has already produced plenty of outfits that can yield hundreds of times better interest rates than the best rate any bank has to offer today. Constant, Nexo, AAVE, Freeway, you name it, finding somewhere that will pay you a REAL APR is super simple. Don't try that with the old legacy system! You can count me out of the EDXM plan. I will never even look that way. Death to the old legacy banking system.
Monicagrizzi
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@cryptospawn wow so much to say . Glad I gave you an audience 🏆😊🏆