EDX Markets, a cryptocurrency exchange supported by traditional financial giants, has announced that its trading volume has exceeded $1.4 billion since December last year. The company has also completed its Series B financing round and is planning to launch its exchange in Singapore, offering spot and perpetual futures trading.
EDX Markets has secured funding for its Series B round led by existing investor Sequoia Capital and new investor Pantera Capital, according to an official announcement. The CEO, Jamil Nazarali, stated that the funds will be used to build new technology and expand EDX’s business in the international market, particularly in Singapore. The exact size of the Series B financing was not disclosed.
The new round of investors includes existing investors Citadel Securities, Virtu Financial, Sequoia, and Fidelity Investments’ digital asset division. Other investors include Charles Schwab Corp., GSR Markets, GTS, Hudson River Trading, Miami International Holdings Inc., and Paradigm. Insiders have reported that the stock price of EDX Markets has doubled since the beginning of 2022.
EDX is currently planning to develop its own platform technology and has decided to abandon the technology it initially adopted through its collaboration with the exchange MEMX (Members Exchange). Jamil Nazarali expressed that Singapore will allow them to expand their product offerings, providing a wider range of tokens and perpetual futures trading. Additionally, Singapore is considered a favorable location for recruiting financial talent, and EDX aims to build a competent and trustworthy team.
Jamil Nazarali also emphasized in the press release that EDX has achieved a nominal trading volume of over $1.4 billion since December, with the clearinghouse having cleared over $3.1 billion in transactions since its launch in October.
EDX’s infrastructure construction simulates a scenario different from traditional cryptocurrency exchanges by referencing mechanisms from traditional markets. It has established its own clearinghouse, but this approach has been criticized as unreasonable. Ram Ahluwalia, the CEO of asset management company Lumida, previously stated that the idea of establishing a clearinghouse aligns with current regulatory frameworks but is actually unnecessary for blockchain settlement. This indicates that the current regulatory frameworks are outdated.
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Citadel, EDX, Pantera Capital, SEC, Fidelity, Sequoia