EDX Markets, the crypto exchange with backing from Wall Street heavyweights, has experienced an extraordinary rise in trading activity this year. The platform has reported over $36 billion in trading volume since January, cementing its position as a key player catering to institutional clients.
October alone saw the exchange’s proprietary matching engine process over 2 million trades and handle more than 2.6 billion orders. The third quarter of 2024 marked a 59% increase in average daily volumes compared to previous quarters, signaling robust demand from brokers and market makers who rely on EDX for its seamless blend of traditional finance expertise and digital asset solutions.
This growth comes against the backdrop of a shifting crypto landscape. EDX launched just months after the infamous collapse of FTX and amidst heightened scrutiny from the U.S. Securities and Exchange Commission on retail-focused exchanges like Coinbase and Binance.
Institutional Appetite for Digital Assets Is Rising
A recent report by The Economist indicates that institutional investors are poised to boost digital asset allocations in their portfolios to 7% by 2027. Currently, these allocations stand at a modest 1% to 5%. Firms like EDX are capitalizing on this trend by providing specialized services tailored for institutional needs, including trading, clearing, and custody.
The shift isn’t limited to crypto-native firms. Traditional financial giants are also moving into the space. For instance, BNY Mellon, America’s oldest bank, launched a custody platform in late 2022 to secure Bitcoin and Ether holdings for its institutional clients. Similarly, DZ Bank in Germany and State Street in the U.S. have rolled out or are developing digital asset custody and tokenization solutions.
The Road Ahead for Institutional Crypto Adoption
Ripple also entered the fray, unveiling a digital asset custody service for banks and fintech firms in October. Meanwhile, Coinbase launched a crypto lending service aimed at institutional clients nearly a year ago.
EDX’s success underscores the growing institutional embrace of digital assets, even as regulatory uncertainties loom large. Its backers—Charles Schwab, Citadel Securities, Fidelity Digital Assets, and Sequoia Capital—are betting on long-term growth, fueled by sophisticated platforms that meet the demands of professional investors.
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