Fidelity-backed crypto exchange EDXM expands institutional access with Talos

Institutional-focused crypto exchange EDX Markets (EDXM) is integrating with Talos, an institutional trading technology provider for digital assets.

The collaboration sees Talos become the first Order and Execution Management System (OEMS) to integrate with EDXM, offering institutional investors access to a wider range of liquidity venues via its front-end interface and trading tools, according to a statement.

"This collaboration broadens our range of liquidity options for clients, reinforcing our commitment to delivering a comprehensive and robust trading experience for both traditional financial institutions and crypto-native firms," EDX Markets CEO Jamil Nazarali said.

Talos will provide EDXM with access to its network of over 40 providers, including top-tier exchanges, custodians, OTC desks and market makers, the statement added. Genesis Trading, BlockTower and Abra are listed among Talos’ existing clients, according to its website.

"By integrating with our trading technology, EDX Markets expands its reach and enhances its offerings, bringing a secure, efficient and transparent trading experience to market participants,” Talos co-founder and CEO Anton Katz said. “This combination will strengthen our collective mission to drive institutional adoption and foster the convergence of traditional finance and digital assets."

Big backers

Backed by major financial players Citadel Securities, Fidelity Investments and Charles Schwab, EDXM was first announced in September. It also has support from Paradigm, Sequoia Capital and Virtu Financial.

Nazarali said the platform would learn from mistakes made by others who tried to attract Wall Street to digital assets in an interview with The Block at the time. “There seemed to be a void in the marketplace for a true exchange," he said.

EDXM went live in June, offering trading in four crypto assets: bitcoin, ether, litecoin and bitcoin cash.

In contrast to existing crypto exchanges, EDXM said at launch it would draw on traditional finance standards but operate as a "non-custodial" exchange. As such, EDXM doesn’t directly manage users' digital assets, serving as a platform that allows firms to execute trades between crypto and fiat currencies.

Designed to mitigate security risks and conflict of interest concerns over potential misuse of customer funds, actual transfers between parties take place outside of the platform. It expects retail brokerages to route their clients' buy and sell orders to its platform, akin to how the stock market operates. While EDXM plans to launch a clearinghouse later this year to facilitate trade settlement, it intends to utilize third-party banks and a crypto custodian for holding customer assets, it said at the time.

Last month, the exchange also announced the closure of a second funding round, with investors including Miami International Holdings and affiliates of proprietary trading firms DV Trading, GTS, GSR and Hudson River Trading.