The world of digital assets is witnessing a seismic shift as major financial powerhouses unite to launch EDX Markets, a new cryptocurrency exchange designed to bring institutional-grade efficiency, lower costs, and enhanced compliance to U.S. investors. Spearheaded by industry titans including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Virtu Financial, Paradigm, and Sequoia Capital, EDX Markets aims to redefine how Americans trade Bitcoin and other qualifying digital tokens.
With deep roots in traditional finance and a shared vision for a more transparent and cost-effective crypto market, this coalition is positioning EDX as the bridge between Wall Street and the rapidly evolving digital asset ecosystem.
👉 Discover how EDX Markets could transform your crypto trading experience
A New Era of Low-Cost, Regulated Crypto Trading
At the heart of EDX Markets’ mission is a simple but powerful goal: drastically reduce trading costs for retail and institutional investors. According to Jamil Nazarali, CEO of EDX Markets and former head of global business development at Citadel Securities, the current crypto market structure imposes significant hidden fees—primarily through wide bid-ask spreads—that disproportionately impact individual traders.
“This market structure costs individual investors a lot of money. We want to bring the efficiency we see in equities into the digital asset space.”
To illustrate the disparity, Nazarali contrasts a hypothetical $5,000 trade in an S&P 500 ETF—where execution costs might amount to mere cents—with a similar-sized Bitcoin (BTC) trade that could incur up to $25 in spread costs on existing platforms. By leveraging competitive market-making and proven financial infrastructure, EDX aims to close that gap.
Strategic Token Selection: Focusing on Non-Security Digital Assets
Unlike many crypto exchanges that list a broad range of tokens—some of which are under regulatory scrutiny—EDX is taking a cautious, compliance-first approach. The exchange will initially support only a select number of digital assets that its legal team believes do not qualify as securities under current U.S. regulations.
Bitcoin (BTC) is confirmed as one of the launch assets. While Nazarali declined to name other tokens or specify exact quantities, the emphasis is clear: avoid regulatory entanglement while building trust with regulators and investors alike.
This strategic restraint positions EDX as a potential model for how traditional finance can engage with crypto without inviting enforcement actions from the SEC or CFTC.
Launch Timeline and Pilot Program
EDX Markets is set to begin operations in stages:
- November: Launch of a pilot trading program
- January: Full public launch
During the pilot phase, select participants will test the platform’s speed, security, and pricing efficiency. Feedback will inform final optimizations before the broader rollout.
Backed by Financial Giants and Market Infrastructure Leaders
EDX Markets is not just another startup—it’s a consortium-backed initiative with unparalleled industry credibility. Founding supporters include:
- Charles Schwab – One of America’s largest retail brokers
- Fidelity Digital Assets – A pioneer in institutional crypto custody and trading
- Citadel Securities – A dominant force in equity market-making
- Virtu Financial – A high-frequency trading leader
- Paradigm & Sequoia Capital – Top-tier venture firms with deep crypto expertise
These institutions will contribute order flow, liquidity, and governance oversight, ensuring that EDX operates with both scale and integrity.
Cutting-Edge Technology Powered by MEMX
Rather than building from scratch, EDX is leveraging the robust exchange architecture of MEMX, a member-owned, customer-centric equities exchange founded in 2019 by major broker-dealers. MEMX provides the technological backbone for EDX, enabling high throughput, low latency, and enterprise-level scalability.
This partnership allows EDX to inherit best practices from traditional markets—something most crypto-native platforms lack.
Physical Infrastructure: Co-Location at NY4 Data Center
One of EDX’s most notable technical decisions is its physical placement: the exchange will operate out of the NY4 data center in Secaucus, New Jersey, a critical hub for U.S. financial markets. This location enables:
- Ultra-low latency trading via co-location services
- Direct connectivity to major market participants
- Integration with microwave networks linking NY4 to CME Group’s data center in Aurora, Illinois—home of Bitcoin futures
“Co-location results in lower latency and higher certainty, allowing market makers to quote tighter prices.”
This infrastructure advantage could make EDX especially attractive to professional traders who rely on speed and precision.
👉 See how top-tier trading platforms are reshaping digital finance
Eliminating Conflicts of Interest and Enhancing Security
EDX is addressing two persistent pain points in the crypto industry:
- Conflict of interest: Unlike some centralized exchanges that trade against their users or control both platform and liquidity, EDX separates exchange operations from trading entities.
- Custody risk: Assets will be protected through a curated network of qualified digital custodians, with transactions settled netted on-chain to reduce cost and complexity.
These structural safeguards are designed to instill confidence among risk-averse institutions and retail investors alike.
Leadership Team with Hybrid Expertise
EDX has assembled a leadership team fluent in both traditional finance and digital assets:
- Jamil Nazarali (CEO) – Former Citadel Securities executive
- Tony Acuña-Rohter (CTO) – Ex-CTO of ErisX, a regulated crypto futures exchange
- David Forman (General Counsel) – Former legal chief at Fidelity Brokerage Services and Fidelity Digital Assets
This blend of Wall Street rigor and crypto-native experience underscores EDX’s dual mandate: innovation grounded in compliance.
FAQs About EDX Markets
Q: What makes EDX Markets different from other crypto exchanges?
A: EDX combines Wall Street-grade infrastructure, strict regulatory alignment, and competitive pricing models—offering lower spreads and higher transparency than many existing platforms.
Q: Which cryptocurrencies will EDX support at launch?
A: While only Bitcoin has been officially confirmed, EDX will initially list a small number of digital assets deemed non-securities by its legal team.
Q: When will EDX Markets go live?
A: A pilot program begins in November, with full public availability expected in January.
Q: Who owns and operates EDX Markets?
A: It is an independent entity owned by a consortium including Charles Schwab, Citadel Securities, Fidelity Digital Assets, Virtu Financial, Paradigm, and Sequoia Capital.
Q: Will Robinhood or other retail brokers use EDX?
A: Not currently listed as a backer, but CEO Jamil Nazarali expressed interest in attracting volume from platforms like Robinhood and market makers like Jump Crypto.
Q: How does EDX plan to lower trading costs?
A: Through competitive market-making, co-location advantages, efficient settlement systems, and leveraging low-cost infrastructure from MEMX.
The launch of EDX Markets signals a pivotal moment in the convergence of traditional finance and digital assets. By prioritizing cost efficiency, regulatory clarity, and institutional-grade security, it offers a compelling alternative to today’s fragmented and often opaque crypto trading landscape.
As adoption grows, platforms like EDX could become the preferred gateway for mainstream investors seeking safe, compliant access to Bitcoin and other qualifying digital assets.
👉 Explore next-generation trading solutions built for the future of finance