You are currently viewing Citadel, Fidelity, and Charles Schwab Joined Forces to Launch a Crypto Exchange |  by Inforvest |  Coinmonks |  Sep 2022

Citadel, Fidelity, and Charles Schwab Joined Forces to Launch a Crypto Exchange | by Inforvest | Coinmonks | Sep 2022

Photo by Kanchanara on Unsplash

Cryptocurrency — Three financial giants in the financial industry, Citadel Securities, Fidelity Investments, and Charles Schwab, have recently announced a momentous collaboration of launching a cryptocurrency exchange named EDX Markets (EDXM). The joint press release elaborated that despite being competitors in other areas of their respective businesses, the three have pooled their resources to accomplish the unique feat with their goal of launching the leading crypto exchange in terms of technology and innovation.

A Closer Look at the Three Giants

Looking closely at each company’s background, Citadel Securities has been one of the world’s most prominent and largest market-making firms. It is currently active in over 50 countries worldwide. On the other hand, Fidelity Investments has also been a renowned multinational financial service company, while Charles Schwab offers one of the broadest financial services in the world, with both corporate and commercial banking arms, consulting segment, and investment and wealth management advisory services catering to both institutional and high-net worth retail clients.

Furthermore, the three are all well-known US publicly listed companies that seek to expand their service offering and maximize their shareholders’ value. Thus, by joining forces, the three leverage their status and resources to rival established crypto exchanges, such as Binance, FTX, and Coinbase. In addition, EDXM aims to be a fully legitimate exchange that adheres to the tight scrutiny of the US Securities and Exchange Commission (SEC) and other US governing body, providing confidence to their future clients that the future clients will not be easily exploited.

An Even Closer Look at EDX Markets

Being the brainchild of the three financial behemoths, EDXM prides itself on a commitment to providing “safer, faster, and more efficient cryptocurrency trading.” Meanwhile, to accomplish this grand objective, the exchange will utilize the state-of-the-art technology built by Member Exchange (MEMX), an equity exchange composed of nine US market makers, retail broker-dealers, and financial services firms of which the three founders are members.

The technology will enable the exchange to scale its trading operation faster in multiple international markets and better accommodate both institutional and retail investors. Moreover, other ventures such as Sequoia Capital, Virtu Financial, and Paradigm will also help EDXM roll out faster. Hence, why the exchange calls itself a “first-of-its-kind.”

“We look forward to welcoming additional participants to the exchange, which will drive ongoing trading in this important asset class while creating a virtuous cycle of continuously enhanced liquidity and efficiency supported by MEMX’s cutting-edge technology,” said Jamil Nazarali, appointed CEO of EDX Markets and a former senior executive at Citadel Securities.

The Edge Over the Competition

According to their press release, EDXM plans to cut out the costly “bilateral settlements” existing crypto exchanges typically have by setting and rerouting trades through its very own blockchain network. Thus, establishing a competitive advantage by being theoretically more cost-efficient than the competition.

EDXM’s Board of Directors (BOD) also discussed the untapped potential of unlocking further demand from millions of market participants whose security is on top of their minds, saying, “Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards.”

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