A cryptocurrency platform called EDX Markets, backed by Ken Griffin’s Citadel Securities, Fidelity, and Charles Schwab(SCHW), launched trading for ether (ETH), bitcoin (BTC), bitcoin cash, and litecoin (LTC).
This platform has evaded the “crypto asset securities” that SEC targeted in recent lawsuits against Coinbase and Binance. By putting them as a “non-custodial” exchange platform, the main motive of EDX is to meet the needs of the prominent financial institutions looking for crypto contact but having second thoughts about central cryptocurrency providers.
The meaning of a non-custodial platform is that it does not control or hold its customer’s tokens and safeguards the assets in a third-party bank that acts like a crypto-custodian, which eliminates the inappropriate use of funds.
Coinbase behaves as a custodian for the crypto customers if they do not get a Coinbase wallet with self-custody. It is not difficult to begin trading in cryptocurrency; it can start with just an exchange that will hold the tokens. But there is a risk of losing the assets if the exchange gets hacked or the profit is lowered because of custodial fees.
The exchange performs like a platform that works like a network connecting all the firms for settling and executing the trades among flat currencies and crypto assets. But it doesn’t settle the trades just like that. EXD plans to bring a clearinghouse business later in the year, allowing it to complete the settlements. The introduction of the exchange comes right after BlackRock’s filling the first spot of bitcoin exchange-traded fund (ETF) in the US, signifying constant institutional interest in the long-drawn crypto market inspite of the recent setbacks and the regulatory concerns the industry saw.
