Fidelity, Charles Schwab, and Citadel Securities To Launch Crypto Exchange

investopedia.com:

Financial behemoths Charles Schwab, Citadel Securities, and Fidelity Digital Assets have collaborated on launching a bitcoin and cryptocurrency exchange. According to a press release, the trio has merged to form a cryptocurrency exchange named EDX Markets (EDXM).

The exchange is said to be a first-of-its-kind launched with a promise of being a “safer, faster and more efficient cryptocurrency trading.” 

To attain its objective, the EDXM will rely on the technology built by The Member Exchange (MEMX), an equity exchange, for scaling its operation to serve retail and institutional investors in several markets. The exchange will also be aided by ventures including Citadel Securities, Paradigm, Sequoia Capital, and Virtu Financial.

“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 continually enhanced liquidity and efficiency supported by MEMX’s cutting-edge technology,” said Jamil Nazarali, CEO of EDX Markets and former global head of business development at Citadel Securities.

The exchange plans to eliminate expensive bilateral settlements by netting and settling trades through its blockchain network. Further, down the line, EDXM’s Board of Directors discussed the crypto market capitalization unlocking the demand for the millions of market participants, 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.”

Prior to this launch, Galaxy Digital CEO Mike Novogratz had hinted about Fidelity launching a crypto firm.Earlier this year, Fidelity pioneered offering bitcoin as a 401(k) investment