Charles Schwab, Citadel, Fidelity Digital launch digital asset exchange

Charles Schwab, Citadel Securities and Fidelity Digital Assets announced the launch of a digital asset exchange, EDX Markets. 

Paradigm, Sequoia Capital and Virtu Financial are also part of the consortium, with additional market participants expected to partner with EDXM over time, the group said.

EDX Markets "will address latent demand for digital asset trading by enabling safe and compliant trading of digital assets through trusted intermediaries," according to a release. "EDXM will enable a highly liquid cryptocurrency ecosystem that aggregates liquidity from multiple market makers to reduce spreads and improve transparency. This commitment to price discovery and efficiency is expected to result in better prices for investors than those offered by existing cryptocurrency exchanges."

The move comes amid an ongoing push by traditional financial institutions into digital assets, even as cryptocurrency prices have slumped over the past nearly year from records. 

“Crypto is a $1 trillion global asset class with over 300 million participants and pent-up demand from millions more," the exchange's board said. "Unlocking this demand requires a platform that can meet the needs of both retail traders and institutional investors with high compliance and security standards."

MEMX, a market operator founded in 2019, will provide the technology infrastructure for EDXM. MEMX was founded by Bank of America Merrill Lynch, Charles Schwab and Citadel Securities, among others.

Jamil Nazarali, formerly global head of business development at Citadel Securities, will serve as the chief executive officer, while Tony Acuña-Rohter, who previously served as chief technology officer at ErisX, through its acquisition by Cboe Global Markets, is joining as CTO. Former Fidelity lawyer David Forman joins as general counsel.