EDX completes Series B round to address institutional growth amid spot BTC ETFs

Rick Steves

“EDX Clearing is a major differentiator for EDX as it streamlines settlement while reducing counterparty risk and capital requirements for our members. Clearing has already delivered significant value to our members who have traded $3.1 billion in notional since its launch. We expect the impact to increase moving forward, positioning us to capitalize on this new wave of institutional growth accelerated by the recent approval of spot BTC ETFs in the U.S.”

EDX Markets (EDX) has announced the successful launch of its digital asset clearinghouse, EDX Clearing, and the completion of its Series B funding round.

The funding round was co-led by Pantera Capital and Sequoia Capital, underscoring EDX’s successful business model and its ability to attract high-quality investors.

The Series B funding will support EDX’s technology development and fuel its global expansion. The funding round included participation from foundational consortium members such as Citadel Securities, Fidelity Digital AssetsSM, Virtu Financial, and Sequoia Capital, along with new investors like Pantera Capital. Other investors include Charles Schwab, DV Crypto, GSR Markets LTD, GTS, HRT Technology, Miami International Holdings, and Paradigm.

EDX Markets went live in 2023

In June 2023, EDX opened trading as a crypto marketplace of choice for industry leaders, building on best practices from traditional finance to provide customers with distinctive benefits including liquidity, competitive quotes, and a non-custodial model designed to mitigate conflicts of interest.

EDX also introduced a retail-only quote to the crypto markets, allowing participants the benefit of better pricing for retail-originated orders. Products traded on EDX include Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).

EDX Markets is owned by some of the biggest industry names – such as Charles Schwab, Citadel Securities, Fidelity Digital AssetsSM, Paradigm, Sequoia Capital, and Virtu Financial.

EDX Clearing reduces the capital needed for trading

Trades on EDX’s market are settled through EDX Clearing, or EDXC, in a single net settlement process, enhancing operational efficiency and reducing the capital needed for trading. This setup considerably lessens credit risk for members by serving as a central counterparty.

Since October 2023, the clearinghouse processed over $3.1 billion in transactions, demonstrating significant value to its members. The new clearinghouse aligns with EDX’s strategic vision of becoming a transparent, trusted, and efficient digital asset market.

Jamil Nazarali, CEO of EDX, said: “EDX Clearing is a major differentiator for EDX as it streamlines settlement while reducing counterparty risk and capital requirements for our members. Clearing has already delivered significant value to our members who have traded $3.1 billion in notional since its launch. We expect the impact to increase moving forward, positioning us to capitalize on this new wave of institutional growth accelerated by the recent approval of spot BTC ETFs in the U.S.

“Further, Pantera’s investment in EDX demonstrates the success of our model and ability to attract quality investors to EDX. We are thrilled to have Pantera back EDX on our mission to be the most competitive, transparent, trusted, and efficient digital asset market.”

Paul Veradittakit, managing partner at Pantera Capital, added: “Institutional crypto investors care more than ever about counterparty risk management. Globally we’re seeing institutions gravitate towards non-custodial marketplaces. With its capitally efficient product, best in class risk management, and backing from global financial heavyweights, EDX is primed to usher in a new era of institutional crypto trading. There is no better team to serve institutional clients, so we know the future of institutional crypto trading is in great hands with Jamil and his team at EDX.”

  • Read this next

    Digital Assets

    360T launches Crypto NDF offering

    “By launching our crypto offering with non-deliverable derivatives products, we are allowing our diverse, global client base to engage with the crypto market without the need to build or invest in Distributed Ledger Technology (DLT) infrastructure. Looking ahead, we will continue to work with our industry partners to expand 360T’s crypto.”

    Technical Analysis

    FTSE 100 index Technical Analysis Report 20 February, 2024

    The FTSE 100 index is likely to fall to support level 7600.00 after reversing from resistance level 7750.00.

    Retail FX

    Afterprime enhances trade reporting with PrimeXM and TRAction

    “This collaboration has made setting up EMIR and MIFIR reporting for our CySEC entity a breeze, allowing us to maintain our focus on providing best-in-class pricing and top-notch customer service.”

    Market News

    US Market Stocks See a Dip Ahead of FOMC Minutes Announcement

    As the financial world eagerly awaits the release of the Federal Open Market Committee (FOMC) meeting minutes scheduled for today, the S&P 500 index begins trading slightly lower, marking a subtle shift in market sentiment following a prolonged rally.

    Fintech

    Adaptive proves that “the future of finance is in the cloud”

    “While workloads have migrated to the cloud over the past decade, some have doubted whether its latency and fault tolerance can match that of on-premises solutions – our joint testing on Google Cloud, proves that this is the case.”

    Retail FX

    Axi Select offers live trading amid “end of demo account prop firm model”

    “We genuinely empathize with the thousands of talented traders who will now be denied access to their allocated funds, and we encourage anyone using the demo trading registration model to question whether their prop firm partner will be able to continue as an ongoing concern given recent events. Unfortunately, this could be the beginning of the end for the demo account prop firm model.”

    Digital Assets

    Celsius founder Mashinsky agrees to shared lawyers with Sam Bankman-Fried

    Former Celsius CEO Alex Mashinsky has addressed potential conflicts of interest in his legal representation during a brief hearing in a New York courtroom.

    Digital Assets

    Sam Bankman-Fried captured in first jail photo

    Sam Bankman-Fried, the once-billionaire founder of FTX, has been spotted looking quite different with a new beard and a slimmer figure in a photo that’s been making rounds, reportedly taken inside New York’s Metropolitan Detention Centre.

    Market News

    Bitcoin stalls at $53,000 level, Ethereum reaches $3,000

    Bitcoin (BTC) faced renewed resistance at the crucial $53,000 level on Tuesday, indicating that the primary cryptocurrency is likely to continue consolidating before making its next decisive move.

    <