6 ms·

Crypto Exchange Backed by Citadel Securities, Fidelity, Schwab Starts Operations

70 points by WhereIsTheTruth 3y ago

WhereIsTheTruth 3y ago
Them trying to ban Binance now makes sense, it's easier when there is no competition!
- CPLX 3y ago
  They don’t do the same thing at all > One major difference: EDX is a “noncustodial” exchange, meaning it doesn’t directly handle its customers’ digital assets. Instead, EDX runs a marketplace where firms agree to execute trades of coins and dollars, using its platform to agree on prices. Then the firms move crypto and cash between each other to settle the trades. Later this year, EDX plans to launch a clearinghouse to facilitate the process of settling trades, but even then it plans to use third-party banks and a crypto custodian to hold customer assets. > In contrast, crypto exchanges typically require their customers to park their digital coins in wallets run by the exchange, creating the risk that the exchange could lose the funds or be tempted to misuse them.
  - WhereIsTheTruth 3y ago
    Exactly what Binance is working on and planning https://twitter.com/cz_binance/status/1591804109224550401 https://twitter.com/cz_binance/status/1591804109224550401 I guess that's part of the FUD strategy
    - CPLX 3y ago
      Ah yes, the classic crypto “that’s being worked on” reply, which is becoming more convincing every year.
      - WhereIsTheTruth 3y ago
        The projects are all here and are open source, it's a competitive market, it's easy to make an announcement, it's harder to come up with the projects all in the open ;)
    - revel 3y ago
      EDX has been in the works for the better part of a decade at this point. Totally unrelated to binance
    - delfinom 3y ago
      Gonna have to break it to you, but the stock market is way ahead of crypto here by decades.
  - smoovb 3y ago
    Great! EDX will trade crypto without actually having any of it. What will they invent next, 2 day settlement times? Why do real time settlement when we can go back to the clearinghouse model which has been with us since the early days of stock brokering...
awb 3y ago
Interesting timing given the SEC pursuit of Coinbase.
- deleted 3y ago
  [deleted]
- LatteLazy 3y ago
  Tin Foil hat time: some crypto natives have claimed the SEC is going after Coinbase etc specifically to "clear the way" for big entrants like this (or even NYSE etc). I cannot comment but that's the theory.
  - EA-3167 3y ago
    Or you know... the SEC went after Coinbase because they were nakedly criminal, and this exchange isn't. Just a thought.
    - rc_mob 3y ago
      Coinbase has been the one company in Crypto that tried very hard to never do anything illegal.
      - EA-3167 3y ago
        Except for the whole, "Unregistered securities" thing, sure.
        WFHRenaissance 3y ago
        They've asked for guidance on registering multiple times and have been stiffed multiple times. Stop acting like a fed.
        EA-3167 3y ago
        I'm 100% with the "feds" on this one, and like most people I'm sick and tired of crypto and its empty apologists. Get a new excuse already and stop blaming other people for how shit crypto is.
helsinkiandrew 3y ago
https://archive.ph/8tbG1 https://archive.ph/8tbG1
dpflan 3y ago
Paywalled. Here is another related article: https://cryptoslate.com/edx-markets-the-institutional-crypto-exchange-backed-by-fidelity-schwab-and-citadel-launches-today/ https://cryptoslate.com/edx-markets-the-institutional-crypto... """ EDX Markets, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, is live as of today, June 20. EDX differentiates itself from traditional crypto exchanges by not directly catering to retail investors as it focuses on institutional traders. Additionally, trading access is via API and does not offer a front-end or trading graphical user interface. WSJ reported that it relies on retail brokerages to route investors’ transaction orders for cryptocurrencies to its marketplace. EDX Chief Executive Jamil Nazarali reportedly said FTX’s failure had heightened demand for crypto exchanges that do not possess the inherent conflict of interest associated with storing customer funds. """ EDX CEO's comment on FTX is pretty funny; so customer don't want a fraudulent system, makes sense... So, any institutional investors out there who would care to comment on the interest level on this? What's the goal? Surely, Wall St. loves an opportunity to make money...
LatteLazy 3y ago
https://archive.ph/8tbG1 https://archive.ph/8tbG1
helsinkiandrew 3y ago
I wonder what this will do to crypto - my guess is that it will result in a lot more crypto trades and be bad for crypto exchanges Many institutions want to trade crypto but don't want or can't use the crypto financial system without a lot of effort. If they can buy coins and use the same (trusted, separated, and audited) exchange, clearing, and custodian systems they use for other trades then crypto trades can be added with little compliance effort. If retail traders can buy and sell bitcoin using their existing retail broker they'll do so rather than open accounts on a crypto exchange. A USD tethered coin offered by a major institution that used this would likely kill tether etc.
- compsciphd 3y ago
  why would it need to use a stablecoin?
  - georgeecollins 3y ago
    Exactly! The whole point of stable coins is to avoid USD transactions. That's not a problem for a broker who is doing KYC and reporting to regulatory bodies. Why pay a fee to use a stablecoin when you can just hold $s or Euros?
    - davidlee1435 3y ago
      Who pays fees to use stablecoins? In fact, the opposite occurs with USDC: https://cryptoslate.com/coinbase-raises-usdc-rewards-to-4/ https://cryptoslate.com/coinbase-raises-usdc-rewards-to-4/
- petesergeant 3y ago
  > Many institutions want to trade crypto Is this still true?
  - dehrmann 3y ago
    Even when it was true, it was more like they wanted to have a small presence in crypto just so they could say they're hip with the times. For others, it was FOMO. None of them were true believers.
rr808 3y ago
Sounds like an idea that was agreed to during the boom, now tech team delivers it when it isn't wanted any more.
- WFHRenaissance 3y ago
  Ether and Bitcoin will be the base layers of the non-USD and non-YUAN financial system.
  - EA-3167 3y ago
    What do you base that rather extraordinary claim on?
  - sharkjacobs 3y ago
    What are you talking about? Is this purely hypothetical or is there a nascent independent financial systems that you think has potential to become the ~3rd largest in the world?
    - rr808 3y ago
      Dont worry bro, there are thousands of posts on the net where people talk about how great it is.
  - A4ET8a8uTh0 3y ago
    I watch that space out of personal interest and I currently see very little indication that this could even happen. There is some interest in bypassing existing dollar supremacy, but currently only China, EU and maybe BRICs as a whole could threaten it. And that does not even touch the digital aspect of it.
    - prottog 3y ago
      > currently only China, EU and maybe BRICs as a whole could threaten it Only theoretically. The USD is the cleanest shirt in a pile of dirty laundry. Neither the euro nor any of the BRICS currencies are getting any cleaner.
f4kenwes 3y ago
[flagged]
thrill 3y ago
It's different when they do it.
- petesergeant 3y ago
  ... because they're able to do compliance.
OhNoNotAgain_99 3y ago
[dead]
binkHN 3y ago
Appears they only trade BTC, ETH, LTC, and BCH: https://edxmarkets.com/trading-resources/ https://edxmarkets.com/trading-resources/
- tylersmith 3y ago
  If you're aiming to be maximally compliant that makes sense. > Over 70% of the market is either Bitcoin, Ether, Litecoin, or Bitcoin Cash. Why did I name those 4? They're not securities. - Gary Gensler
  - jwestbury 3y ago
    Not sure a quote from Gensler prior to his SEC appointment (or even after, in a non-official capacity) holds much regulatory weight.
andrewstuart 3y ago
I’m pretty sure everyone has left this party for the much bigger AI party down the street.
jcpham2 3y ago
FWIW I still keep about six figures on Coinbase in crypto The day the SEC sued Coinbase back I made a large purchase of $COIN when the stock tanked. This is my personal risk/conviction level. The SEC is bought and paid for, I wouldn't trust the SEC to protect me from anything. I'll take off my tinfoil hat now. Everyone have a nice day. I'm not a financial advisor and I'm not shilling anything for coinbase

WhereIsTheTruth 3y ago

Them trying to ban Binance now makes sense, it's easier when there is no competition!

CPLX 3y ago
They don’t do the same thing at all > One major difference: EDX is a “noncustodial” exchange, meaning it doesn’t directly handle its customers’ digital assets. Instead, EDX runs a marketplace where firms agree to execute trades of coins and dollars, using its platform to agree on prices. Then the firms move crypto and cash between each other to settle the trades. Later this year, EDX plans to launch a clearinghouse to facilitate the process of settling trades, but even then it plans to use third-party banks and a crypto custodian to hold customer assets. > In contrast, crypto exchanges typically require their customers to park their digital coins in wallets run by the exchange, creating the risk that the exchange could lose the funds or be tempted to misuse them.
- WhereIsTheTruth 3y ago
  Exactly what Binance is working on and planning https://twitter.com/cz_binance/status/1591804109224550401 https://twitter.com/cz_binance/status/1591804109224550401 I guess that's part of the FUD strategy
  - CPLX 3y ago
    Ah yes, the classic crypto “that’s being worked on” reply, which is becoming more convincing every year.
    - WhereIsTheTruth 3y ago
      The projects are all here and are open source, it's a competitive market, it's easy to make an announcement, it's harder to come up with the projects all in the open ;)
  - revel 3y ago
    EDX has been in the works for the better part of a decade at this point. Totally unrelated to binance
  - delfinom 3y ago
    Gonna have to break it to you, but the stock market is way ahead of crypto here by decades.
- smoovb 3y ago
  Great! EDX will trade crypto without actually having any of it. What will they invent next, 2 day settlement times? Why do real time settlement when we can go back to the clearinghouse model which has been with us since the early days of stock brokering...

awb 3y ago

Interesting timing given the SEC pursuit of Coinbase.

deleted 3y ago
[deleted]
LatteLazy 3y ago
Tin Foil hat time: some crypto natives have claimed the SEC is going after Coinbase etc specifically to "clear the way" for big entrants like this (or even NYSE etc). I cannot comment but that's the theory.
- EA-3167 3y ago
  Or you know... the SEC went after Coinbase because they were nakedly criminal, and this exchange isn't. Just a thought.
  - rc_mob 3y ago
    Coinbase has been the one company in Crypto that tried very hard to never do anything illegal.
    - EA-3167 3y ago
      Except for the whole, "Unregistered securities" thing, sure.
      - WFHRenaissance 3y ago
        They've asked for guidance on registering multiple times and have been stiffed multiple times. Stop acting like a fed.
        EA-3167 3y ago
        I'm 100% with the "feds" on this one, and like most people I'm sick and tired of crypto and its empty apologists. Get a new excuse already and stop blaming other people for how shit crypto is.

helsinkiandrew 3y ago

https://archive.ph/8tbG1 https://archive.ph/8tbG1

dpflan 3y ago

Paywalled. Here is another related article: https://cryptoslate.com/edx-markets-the-institutional-crypto-exchange-backed-by-fidelity-schwab-and-citadel-launches-today/ https://cryptoslate.com/edx-markets-the-institutional-crypto... """ EDX Markets, a non-custodial cryptocurrency exchange backed by Citadel Securities, Fidelity Investments, and Charles Schwab, is live as of today, June 20. EDX differentiates itself from traditional crypto exchanges by not directly catering to retail investors as it focuses on institutional traders. Additionally, trading access is via API and does not offer a front-end or trading graphical user interface. WSJ reported that it relies on retail brokerages to route investors’ transaction orders for cryptocurrencies to its marketplace. EDX Chief Executive Jamil Nazarali reportedly said FTX’s failure had heightened demand for crypto exchanges that do not possess the inherent conflict of interest associated with storing customer funds. """ EDX CEO's comment on FTX is pretty funny; so customer don't want a fraudulent system, makes sense... So, any institutional investors out there who would care to comment on the interest level on this? What's the goal? Surely, Wall St. loves an opportunity to make money...

LatteLazy 3y ago

https://archive.ph/8tbG1 https://archive.ph/8tbG1

helsinkiandrew 3y ago

I wonder what this will do to crypto - my guess is that it will result in a lot more crypto trades and be bad for crypto exchanges Many institutions want to trade crypto but don't want or can't use the crypto financial system without a lot of effort. If they can buy coins and use the same (trusted, separated, and audited) exchange, clearing, and custodian systems they use for other trades then crypto trades can be added with little compliance effort. If retail traders can buy and sell bitcoin using their existing retail broker they'll do so rather than open accounts on a crypto exchange. A USD tethered coin offered by a major institution that used this would likely kill tether etc.

compsciphd 3y ago
why would it need to use a stablecoin?
- georgeecollins 3y ago
  Exactly! The whole point of stable coins is to avoid USD transactions. That's not a problem for a broker who is doing KYC and reporting to regulatory bodies. Why pay a fee to use a stablecoin when you can just hold $s or Euros?
  - davidlee1435 3y ago
    Who pays fees to use stablecoins? In fact, the opposite occurs with USDC: https://cryptoslate.com/coinbase-raises-usdc-rewards-to-4/ https://cryptoslate.com/coinbase-raises-usdc-rewards-to-4/
petesergeant 3y ago
> Many institutions want to trade crypto Is this still true?
- dehrmann 3y ago
  Even when it was true, it was more like they wanted to have a small presence in crypto just so they could say they're hip with the times. For others, it was FOMO. None of them were true believers.

rr808 3y ago

Sounds like an idea that was agreed to during the boom, now tech team delivers it when it isn't wanted any more.

WFHRenaissance 3y ago
Ether and Bitcoin will be the base layers of the non-USD and non-YUAN financial system.
- EA-3167 3y ago
  What do you base that rather extraordinary claim on?
- sharkjacobs 3y ago
  What are you talking about? Is this purely hypothetical or is there a nascent independent financial systems that you think has potential to become the ~3rd largest in the world?
  - rr808 3y ago
    Dont worry bro, there are thousands of posts on the net where people talk about how great it is.
- A4ET8a8uTh0 3y ago
  I watch that space out of personal interest and I currently see very little indication that this could even happen. There is some interest in bypassing existing dollar supremacy, but currently only China, EU and maybe BRICs as a whole could threaten it. And that does not even touch the digital aspect of it.
  - prottog 3y ago
    > currently only China, EU and maybe BRICs as a whole could threaten it Only theoretically. The USD is the cleanest shirt in a pile of dirty laundry. Neither the euro nor any of the BRICS currencies are getting any cleaner.

f4kenwes 3y ago

[flagged]

thrill 3y ago

It's different when they do it.

petesergeant 3y ago
... because they're able to do compliance.

OhNoNotAgain_99 3y ago

[dead]

binkHN 3y ago

Appears they only trade BTC, ETH, LTC, and BCH: https://edxmarkets.com/trading-resources/ https://edxmarkets.com/trading-resources/

tylersmith 3y ago
If you're aiming to be maximally compliant that makes sense. > Over 70% of the market is either Bitcoin, Ether, Litecoin, or Bitcoin Cash. Why did I name those 4? They're not securities. - Gary Gensler
- jwestbury 3y ago
  Not sure a quote from Gensler prior to his SEC appointment (or even after, in a non-official capacity) holds much regulatory weight.

andrewstuart 3y ago

I’m pretty sure everyone has left this party for the much bigger AI party down the street.

jcpham2 3y ago

FWIW I still keep about six figures on Coinbase in crypto The day the SEC sued Coinbase back I made a large purchase of $COIN when the stock tanked. This is my personal risk/conviction level. The SEC is bought and paid for, I wouldn't trust the SEC to protect me from anything. I'll take off my tinfoil hat now. Everyone have a nice day. I'm not a financial advisor and I'm not shilling anything for coinbase