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Traditional Financial Giants Team Up To Launch Crypto Exchange: What You Need To Know

Traditional financial giants Charles Schwab Corporation

Benzinga · 09/13/2022 12:07

Traditional financial giants Charles Schwab Corporation

(NYSE:SCHW),  Citadel Securities and Fidelity Investments on Tuesday announced the launch of a cryptocurrency exchange, EDX Markets (EDXM), signaling that Wall Street is eager to make inroads in the space despite an ongoing bear market.

The exchange will address latent demand for digital asset trading by enabling safe and compliant trading of digital assets through “trusted intermediaries,” the companies said in a joint statement. 

EDXM Aims For ‘Highly Liquid Cryptocurrency Ecosystem’

EDXM will enable a highly liquid cryptocurrency ecosystem that aggregates liquidity from multiple market makers to reduce spreads and improve transparency, according to Tuesday's announcement. 

“This commitment to price discovery and efficiency is expected to result in better prices for investors than those offered by existing cryptocurrency exchanges.”

The announcement comes as traditional financial institutions continue to invest in digital assets despite a recent decline in cryptocurrency prices from all-time highs seen in November 2021. 

Unlocking Crypto Demand From Millions Of Investors

"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," the company's board of directors said in a statement.

The technology infrastructure for EDXM will be provided by MEMX, a market operator established in 2019.

Charles Schwab, Citadel Securities, Bank of America Merrill Lynch and other companies founded MEMX.

Jamil Nazarali, formerly the global head of business development at Citadel Securities, will serve as the exchange's chief executive officer.

Tony Acua-Rohter, who was previously the chief technology officer at ErisX until it was acquired by Cboe Global Markets, will join as the company's chief technology officer.

David Forman, a former attorney for Fidelity, has joined as general counsel.

Are you ready for the next crypto bull run? Be prepared before it happens! Hear from industry thought leaders like Kevin O’Leary and Anthony Scaramucci at the 2022 Benzinga Crypto Conference on Dec. 7 in New York City.