The financial world is witnessing a pivotal shift as major Wall Street institutions officially announce the launch of EDX Markets, a new digital asset exchange poised to reshape how Americans trade cryptocurrencies. Spearheaded by industry titans including Charles Schwab, Citadel Securities, and Fidelity Digital Assets, this venture marks a significant step toward integrating crypto into the mainstream financial ecosystem — with a clear focus on lower costs, regulatory compliance, and institutional-grade efficiency.
A New Era in Crypto Trading: Efficiency Meets Security
EDX Markets emerges at a time when regulatory uncertainty continues to cloud the U.S. crypto landscape. Rather than wade into debates over whether most tokens qualify as securities, EDX has taken a strategic approach: it will initially list only a select number of digital assets believed to fall outside current securities definitions — starting with Bitcoin (BTC).
This deliberate positioning allows EDX to sidestep ongoing legal battles involving major exchanges while offering investors access to high-demand assets under a compliant framework.
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Jamil Nazarali, CEO of EDX Markets and former head of global business development at Citadel Securities, emphasized the goal: "We want to bring the efficiency we see in equities to the digital asset market." He highlighted a stark contrast in trading costs — where a $5,000 stock ETF trade might cost mere cents in spread, an equivalent BTC trade today could cost up to $25.
"That kind of market structure is expensive for retail investors," Nazarali noted. "Our mission is to drastically reduce those costs through competition, transparency, and superior technology."
Backed by Financial Powerhouses
EDX Markets isn’t just another startup — it’s backed by some of the most influential names in finance:
- Charles Schwab – One of the largest retail brokerage platforms in the U.S.
- Fidelity Investments – Through its dedicated digital assets arm, Fidelity Digital Assets℠
- Citadel Securities – A dominant force in equity market-making
- Virtu Financial – Another top-tier electronic trading firm
- Paradigm and Sequoia Capital – Leading venture capital firms with deep roots in both traditional finance and crypto innovation
These founding members form a powerful consortium that brings together order flow, liquidity, compliance expertise, and cutting-edge infrastructure — all critical components for building a trusted, scalable exchange.
The exchange will operate independently but benefit from close collaboration with its backers. Retail brokers in the group will route customer orders to EDX, while Citadel Securities, Virtu, and other designated market makers will compete to execute them — fostering tighter spreads and better pricing.
Built on Proven Technology: The MEMX Advantage
Rather than building from scratch, EDX leverages the battle-tested exchange architecture of MEMX, an innovative, member-owned equities exchange founded in 2019 by firms including Schwab, Fidelity, and Citadel. This foundation ensures reliability, scalability, and low-latency performance — features long valued in traditional markets but often missing in crypto.
By adopting MEMX’s infrastructure, EDX gains access to:
- High-throughput matching engines
- Robust cybersecurity protocols
- Transparent price discovery mechanisms
- Efficient clearing and settlement workflows
Additionally, transactions on EDX will be settled via blockchain-based netting, reducing reliance on costly bilateral settlements and accelerating finality — all while maintaining compliance and auditability.
Physical Infrastructure Matters: Why New Jersey?
Location plays a crucial role in modern trading. EDX will be hosted at the NY4 data center in Secaucus, New Jersey — a nerve center for U.S. financial markets and home to systems connected to the NYSE, Nasdaq, and major trading firms.
This strategic placement enables co-location services, allowing market makers to place their servers physically close to the exchange’s matching engine. The result? Lower latency and faster trade execution — essential advantages for competitive pricing.
Moreover, Citadel Securities and Virtu already use high-speed microwave networks linking NY4 with CME Group’s data center in Aurora, Illinois — where Bitcoin futures are actively traded. This connectivity creates natural hedging opportunities for professional traders dealing in spot BTC on EDX.
Eliminating Conflicts of Interest
One of EDX’s core differentiators is its structural integrity. Unlike many existing crypto exchanges that blend trading operations with market-making or custody services, EDX strictly separates these functions.
This means:
- No proprietary trading desks influencing prices
- No self-preferencing of internal liquidity
- Clear separation between exchange operators and participants
According to David Forman, General Counsel of EDX and former chief legal officer at Fidelity Brokerage Services, "Compliance and investor protection are foundational. We’re designing this platform not just for performance — but for trust."
Customers’ assets will be safeguarded through a vetted network of qualified digital custodians, ensuring security without compromising regulatory adherence.
Launch Timeline and Market Ambitions
EDX Markets is on track for a phased rollout:
- November: Pilot trading round begins
- January (2025): Full public launch
While initial listings will be limited to a small number of non-security digital assets — led by Bitcoin — the team has signaled plans to expand based on regulatory clarity and market demand.
Tony Acuña-Rohter, CTO of EDX and former CTO of ErisX (a regulated crypto futures exchange), leads technical development efforts. His experience in bridging traditional finance with blockchain systems positions EDX well for future scalability.
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Although Robinhood Markets and other major retail brokers aren’t currently listed as supporters, Nazarali expressed openness: "We’d love to see all retail order flow come through EDX. And we hope Jump Crypto becomes one of our key market makers."
Addressing Key Questions: EDX Markets FAQ
Q: Is EDX Markets a cryptocurrency exchange?
A: Yes. EDX Markets is a U.S.-based digital asset exchange focused on secure, compliant trading of select cryptocurrencies like Bitcoin.
Q: Will EDX offer altcoins or only Bitcoin?
A: Initially, only a few non-security tokens including Bitcoin. More assets may be added in the future as regulatory standards evolve.
Q: How does EDX plan to lower trading costs?
A: By leveraging competitive market making, efficient infrastructure (via MEMX), and co-location capabilities — similar to how stock exchanges minimize spreads.
Q: Who owns EDX Markets?
A: It’s independently operated but supported by a consortium including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Virtu Financial, Paradigm, and Sequoia Capital.
Q: When will EDX launch?
A: A pilot program starts in November, with full operations expected in January 2025.
Q: How is EDX different from other crypto exchanges?
A: It avoids conflicts of interest by separating exchange operations from trading activity, uses proven equities-grade tech (MEMX), and prioritizes regulatory compliance over speculative expansion.
The Bigger Picture: Institutional Adoption Accelerates
With over 300 million global crypto users and a market cap exceeding $1 trillion, demand for safe, transparent access is undeniable. EDX Markets aims to unlock this potential for U.S. investors — particularly those who have hesitated due to concerns about fraud, volatility, or regulatory risk.
As stated by the EDX board: "Cryptocurrency is a major asset class that deserves a platform built for both retail and institutional needs — with high compliance and security standards."
By combining trusted intermediaries, proven technology, and competitive dynamics, EDX could become the go-to exchange for compliant digital asset trading in America.