EDX Markets, a new crypto exchange backed by Charles Schwab, Fidelity Digital Assets, and Citadel Securities has officially launched . The platform will use “technology provided by MEMX with best practices from traditional financial markets and tighter spreads enabled by greater liquidity, to support secure, fast and efficient cryptocurrency trading.”
EDXM is targeting both retail and institutional customers, yet only allowing trades of cryptocurrencies approved by the SEC, i.e., Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. Although the SEC has been at legal battles with the world’s biggest crypto exchanges, these cryptocurrencies were never involved in the legal deliberations.
EDX Markets will undoubtedly enter as a strong competitor in the market, due to the sheer financial backing behind it. To put things into perspective, Charles Shwab is a financial services company with over $7 trillion under its management. Fidelity Digital Assets is owned by Fidelity, an asset management company with over $4 trillion under its management. And Citadel Securities is the largest designated market maker on the New York Stock Exchange. This assures everyone involved in the market that EDX Markets will soon be a serious competitor to market leaders, such as Binance and Coinbase.
Speaking of Binance and Coinbase: Both exchanges are currently facing lawsuits filed by the US Securities and Exchange Commission. Although each exchange is facing a different set of allegations, they nevertheless pose a threat to the exchanges’ futures.
Binance, currently the world’s biggest crypto exchange, as well as its founder Changpeng Zhao, is facing thirteen lawsuits filed by the SEC. The allegations include serious charges such as evasion of US regulators, wash trading, commingling customer funds, and artificially inflating trading volumes. These lawsuits have already done substantial damage to the exchange, as Binance has officially halted all USD transactions and suspended all OTC trades on the platform. Moreover, both Binance and CZ are expecting potential federal charges filed by the DOJ based on the lawsuits filed by the SEC.
On the other hand, Coinbase, the largest US-based crypto exchange, is facing a lawsuit for allegedly trading in “unregistered securities”, although the company had its IPO by the SEC in 2021. Coinbase was even the platform on which the American government sold a sum of Bitcoins.
Note the keyword, Bitcoin. The SEC always excluded four specific cryptocurrencies from any of their legal charges: Ethereum, Bitcoin, Litecoin, and Bitcoin Cash. Even SEC Chair Gary Gensler, in an interview with CNBC, affirmed that these coins are indeed “not a security.”
For that very reason EDX Markets is only planning on trading these four tokens, and as a result, avoiding legal scrutiny from the SEC. Simultaneously, Binance announced that the platform is integrating the Bitcoin Lightning Network, which will enable the exchange to speed up the transaction process and demand lower fees from clients.
Another major news to keep in mind is that Blackrock, the world’s biggest asset management firm, has officially applied for its own spot Bitcoin trading ETF. While the application hasn’t been approved yet, their record shows that it’s almost certain that it will go through. Blackrock may be a little behind EDX Markets in the crypto exchange space, but, then again, the sheer financial backing behind their future platform is bound to give it the boost it needs to be at the forefront of the race.
Now, with Fidelity, Citadel Securities, Charles Shwab, and Blackrock, some of the country’s (and world’s) wealthiest corporations, pouring their resources into the four approved cryptocurrencies, is there any hope left for the future of altcoins?