Financial Heavyweights Citadel, Charles Schwab, Fidelity Confirm Cryptocurrency Exchange Launch

Fidelity Investments and Citadel Securities were among the financial giants that announced Tuesday that a consortium of companies would launch EDX Markets, a cryptocurrency exchange. According to reports, Virtu Financial, Sequoia Capital and Paradigm are supporting the new cryptocurrency trading platform. Although the story was first reported in June's first week, the companies have since confirmed the creation of the new crypto trading platform and appointed a chief executive officer.

EDX Markets plans to 'Remove Significant Interest Conflicts That Affect Existing Cryptocurrency Exchanges'

Citadel Securities, Charles Schwab and Fidelity Investments published a press release Tuesday revealing that financial heavyweights plan to launch a cryptocurrency exchange. Jamil Nazarali (an ex-Citadel executive) will serve as the platform's chief executive.

The EDX launch date has not been confirmed, but MEMX (also known as the Members Exchange) will operate the trading engine. According to the Wall Street Journal, EDX's launch is being planned by Virtu Financial, a high-speed trading company, and Sequoia Capital Venture Partners.

EDX will serve institutional and retail investors, and will be different from traditional crypto exchanges. The EDX press release, published Tuesday, notes that EDX aims "to remove significant conflicts of interests that affect existing cryptocurrency exchanges."

Citadel's Ken Griffin is skeptical about cryptocurrencies and bitcoin, while Fidelity has been interested in them for a while. Griffin changed his perspective on crypto assets in March 2022. He mentioned that the securities giant was planning to invest in crypto. In June of 2018, it was reported that Citadel and Charles Schwab would be launching an exchange.

Mayura Hooper, a spokesperson from Charles Schwab, stated that "We know there's significant interest in the cryptocurrency space" and would look to invest in companies and technologies offering access in a secure environment.

Charles Schwab's asset subsidy launched its first crypto related exchange-traded fund (ETF) at the end of July. Fidelity announced in June that it was hiring individuals to manage digital currency custody and crypto trading, despite the crypto winter.

What do you think of Citadel, Charles Schwab, and Fidelity starting a crypto-exchange? Please comment below to let us know your thoughts on this topic.

By: Jamie Redman
Title: Financial Heavyweights Citadel, Charles Schwab, Fidelity Confirm Cryptocurrency Exchange Launch
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Published Date: Tue, 13 Sep 2022 19:30:12 +0000

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