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