Why Are Citadel, Fidelity, Charles Schwab Jumping to Crypto And Launching An Exchange?

Leading financial institutions Citadel, Fidelity, and Charles Schwab have joined forces with prominent investment firms Sequoia Capital, Virtu Financial, and Paradigm to introduce crypto exchange EDX Markets.

The announcement of EDX Markets’ arrival highlighted the platform’s successful operation over the past few weeks.

Drawing inspiration from traditional finance, EDX has reportedly emerged as the top choice for industry leaders, incorporating best practices to provide exceptional benefits to its customers. These advantages include improved liquidity, competitive quotes, and a distinctive non-custodial model that effectively addresses conflicts of interest.

In the unique EDX model, the exchange functions as a trusted marketplace, ensuring that customer assets are not directly managed. Instead, participating firms leverage the services offered by EDX to establish trade prices. Acting as an intermediary platform, EDX facilitates seamless transactions between parties, offering an unmatched setup for trade execution.

Accompanying the announcement is the reported upcoming launch of EDC Clearing later this year. EDX Clearing will enable traders to settle trades matched on EDX Markets, further enhancing the platform’s capabilities. Presently, EDX Markets supports trading in popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Jamil Nazarali, CEO of EDX, expressed his confidence in the platform’s success, stating, “The ability of EDX to attract new investors and partners despite challenges in the sector demonstrates the strength of our platform and the growing demand for a secure and compliant cryptocurrency market.”

Dirty Bubble Media weighed in on the recent jump of the financial institutions to crypto, emphasizing the move is predicated by the issues related to fraud and market manipulation which pose the most significant obstacles for Bitcoin ETF approval.

The Securities and Exchange Commission (SEC) has consistently rejected previous Bitcoin ETF applications, citing recurring concerns. Dirty Bubble Media highlights the SEC’s concerns, which primarily revolve around two main areas: potential issues with the Bitcoin network itself and the risk of fraud and market manipulation affecting Bitcoin’s price.

Recently, BlackRock, the $9-trillion money manager, filed an application with the SEC to introduce a spot bitcoin exchange traded fund. If approved, this would mark the first publicly traded spot bitcoin ETF in the US, with the fund set to trade on the renowned Nasdaq stock market.

The media outlet notes that the SEC has specifically identified Binance, the largest crypto exchange, as allegedly engaging in illicit practices that contribute to these concerns. The SEC has even highlighted the role of Tether, a stablecoin, in manipulating the price of Bitcoin.

In a series of tweet, Dirty Bubble Media speculates that for a Bitcoin ETF to gain approval, both Binance and Tether must be effectively removed from the equation. With ongoing criminal investigations surrounding both entities, Dirty Bubble Media suggests that this scenario could soon become a reality.

“Do these giant firms know something we don’t? Or are they using public information to conclude that these guys are about to go down, leaving the path to an ETF (mostly) open?” Dirty Bubble Media asked.

The implications of such a development are substantial, as a Bitcoin ETF would allow traditional investors to gain exposure to the cryptocurrency market more easily. Industry experts will be closely monitoring the actions of regulatory bodies and the outcomes of the investigations involving Binance and Tether to gauge the potential for progress in this area.

Information for this briefing was found via the Watcher.Guru and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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