What can EDX crypto exchange from Fidelity and other heavyweights do?
3 min readFour coins, many big names: Wall Street dropped the bomb this Tuesday. The new and fully regulated crypto exchange EDX Markets starts operations. For many in the crypto industry, it is an emblem of the old world of finance. US billionaire Charles Schwab is behind EDX, along with other Wall Street heavyweights including: Fidelity and Citadel Securities, which trade and manage billions of dollars in assets.
“Incredible timing,” crypto exchange Binance CEO Changpeng Zhao tweeted. “But the more the merrier.” The implication is clear: his exchange and Coinbase have just been indicted by the SEC. The crypto industry finds itself in the stranglehold of the US authorities. And now… come the big ones. blow after blow. There is also speculation about a BlackRock ETF.
“The SEC’s crusade against Binance & Coinbase reveals a clearer narrative,” writes Blockchian developer Rich Quack. And asks: Gary Gensler, head of the SEC, just a “puppet of top executives”? This reading can be found in variations everywhere on Twitter. Miles Deutscher says: “The takeover of traditional financial institutions is beginning.” Caitlin Long, founder of Custodia Bank, explains in journalist Camilla Russo’s podcast: US regulators have cleared the way for Wall Street with their attacks on crypto. They do not protect investors, but established companies.
EDX Markets markets itself as a non-custodial exchange. It is traded similarly to the New York Stock Exchange (NYSE) or the Nasdaq (NASDAQ). EDX brings buyers and sellers together on the platform but does not custodian their assets. So far, only four coins are listed: Bitcoin, Bitcoin Cash, Ethereum and Litecoin. The reason: These have not yet been classified as securities by the US financial regulator SEC. CNBC is talking about a “new phase” for the industry. “This is a step in the direction of how the institutional financial market works,” said Josh Brown, major investor, in an interview.
“Blockchain, but without crypto”
“EDX avoids catering directly to small investors,” tweeted digital asset manager, Ram Ahluwalia: “It caters to institutions.” Unlike traditional crypto exchanges, you need third parties to invest: first and foremost “banks and crypto custodians.” Crypto investor Austin Campbell says: “It’s the next version of blockchain, but without crypto, which actually means in this case blockchain, but blockchain is not allowed. To me, that’s the equivalent of using a horse to pull your car instead of embracing the innovation of automobility.”
