In the rapidly evolving world of cryptocurrency, EDX Markets, a company supported by Fidelity, has made a significant stride. They recently announced the establishment of their clearinghouse, EDX Clearing. Alongside this development, they completed a Series B funding round, showcasing remarkable growth in their market performance. This achievement is not just a milestone for EDX Markets but also an indicator of the potential growth in the cryptocurrency sector.

Growth and Expansion Plans

EDX Markets, while not disclosing the exact amount of Series B funding, was reported by Bloomberg to have doubled its value since Series A. This round of funding saw the involvement of a new investor, Pantera Capital, joining hands with an existing investor, Sequoia Capital.

The funding round also included participation from other notable entities like Citadel Securities, Fidelity Digital Assets, and Virtu Financial. The consortium of investors also comprises industry leaders such as Charles Schwab, DV Crypto, and others.

The trading performance of EDX Markets has been impressive, with a cumulative notional value of $3.1 billion traded since its inception. In December alone, the trade value reached $1.4 billion. Currently, EDX Markets facilitates the spot trading of major cryptocurrencies like Bitcoin, Ether, and Litecoin.

These are considered commodities by the SEC, and although backed by traditional finance (TradFi) entities, EDX Markets operates without the regulation of CFTC or SEC. With an operational money services license in Illinois, EDX Clearing is making its mark in the crypto world.

Strategy for Asian Market Entry

A significant part of EDX Markets’ strategy involves expansion into the Asian market, specifically targeting Singapore. Singapore’s regulatory environment is seen as favorable, especially for institutional derivative trading of cryptocurrencies, which is currently unregulated.

EDX Markets is planning to obtain necessary approvals for both spot and derivatives trading in Singapore. Additionally, they aim to introduce perpetual futures, a concept popular in the decentralized finance (DeFi) sector.

In Asia, EDX Markets will face competition from AsiaNext, a joint venture involving Switzerland’s SIX stock exchange and SBI Digital Asset Holdings. The latter has already launched an institutional crypto derivatives exchange in Singapore.

Centralized Crypto Clearinghouse: A Game Changer

EDX Markets is revolutionizing the cryptocurrency trading landscape with the introduction of EDX Clearing. As a non-custodial marketplace, EDX Markets ensures security through Anchorage, which provides digital asset custody during settlement. The centralized clearing and netting system reduces liquidity requirements and credit risk. Operating round the clock, settlements are scheduled on business days.

Paul Veradittakit of Pantera Capital highlighted the importance of counterparty risk management for institutional crypto investors. He commended EDX Markets for its capital efficiency, risk management, and strong backing from global financial giants. This positions EDX Markets at the forefront of a new era in institutional crypto trading.

Source: https://www.ledgerinsights.com/edx-markets-crypto-passes-1bn-asia/