Citadel to Launch Crypto Exchange After FTX Collapse

Citadel is partnering up with Charles Schwab, Fidelity, Sequoia, Paradigm, and Virtu to launch EDXM, a cryptocurrency exchange.

The fall of FTX was primarily due to centralized players so what’s to say EDXM won’t be subject to such errors?

EDXM’s custody and wallet technology is being provided by crypto custody and infrastructure company Paxos, the companies announced in October.

Paxos, which is a custodian regulated by New York state, holds customer accounts in fully segregated accounts and has signed up large consumer-facing clients to enable crypto trading.

Its customers include PayPal, broker dealers such as Interactive Brokers, and others such as Nubank and Mastercard.

Crypto is still a taboo area for most of Wall Street, but with companies such as Citadel and its partners, it could attract big institutional money.

Here’s the latest crypto news.

Related: How to Invest in Cryptocurrency for Beginners

What is EDXM?

Citadel to launch crypto exchange EDXM
Citadel to launch crypto exchange EDXM.

EDXM is a new crypto exchange being developed by Wall Street giants such as Citadel, Virtu, and Fidelity for digital assets such as cryptocurrencies.

EDXM plans to offer delivery settlement versus payment settlement, a settlement method that’s used in traditional securities trading.

Other promises include extremely low transaction fees due to tight spreads enabled by greater liquidity.

The crypto exchange is also supposed to be different from some other crypto providers that are the market maker, exchange, and custodian all in one, which can be a conflict of interest and is typically not done in traditional markets.

Sort of like how Citadel is a market maker, hedge fund, and dark pool.

The head of strategy at Paxos says EDXM will provide transparency for the crypto market.

Some investors might argue that Citadel and its partners should provide more transparency in the stock market first before making such claims for the cryptocurrency market.

While some on Wall Street might think EDXM could lift the crypto industry, others look at the partnership as a means for Wall Street to take advantage of investors elsewhere.

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  1. nicholutso

    Hey Frank, Citadel doesn’t need customers on the platform, nor do they care about transparency or regulators. In case you weren’t aware FTX was a means to “locate” stock for folks like Citadel through their tokenized stock offerings.

    By printing fake tokenized stock it gave market makers and hedge funds the thinnest of pretexts to assure the SEC and CFTC that all these, “sold not yet purchased” liabilities could be found if needed.

    With FTX gone the emperor is now making a big show of spinning his own invisible cloth for his fabulous new naked shorts.

  2. daniel johnson

    you know with all the news behind FTX and these AMC GME tokens and others being offered on their website it makes one wonder if the dark pools are being routed to a tokenized exchange. im not here to bash anyone but the truth is there needs to be some sort of separation between market makers and hedgefunds considering its a red flag due to conflict of interest. how can one honestly run a fair and free market when temptation is at their fingertips.. lets not forget janet yellen took money for speeches and gary gensler isnt looking to great either. not to mention sams ties to all these people and the fact hes not been arrested! whats really going on behind the scenes… i think that theres very good reason to believe a thorough investigation needs done and some people need to be held accountable and if ftx does have tokenized securities are they through nyse? we all know the answers but its fair to ask questions to get answers.. the next question to follow would be was ken griffin using the dark pool to dump synthetic shares on ftx.. these questions need answered and investigations need to take place. lets face it ken griffins banned from chinas market why is that? you tell me whats going on cause it looks pretty serious from what i see.

  3. FrankNez

    Let’s start a discussion! Leave your thoughts below.

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