THE FUTURE OF INSTITUTIONAL TRADING

 

The gap between traditional finance and decentralized finance has become increasingly evident as crypto has matured. Institutional investors are accustomed to the regulated and sophisticated mechanisms of TradFi products and struggle to navigate the complexities of crypto platforms. Current crypto trading solutions, while innovative, often fall short in addressing the nuanced needs of institutional players. Fragmented liquidity, heightened counterparty risks, and the lack of a low-cost, capital-efficient trading environment are major hurdles for institutions to overcome. We believe seamless integration of institutional capital into the crypto markets is integral to the next evolution of the industry.

 

ENTER EDX MARKETS

 

EDX Markets represents a seismic shift in the crypto trading landscape, particularly for institutional players. At Pantera, we have always been keen on backing ventures that we believe not only promise innovation but also demonstrate a clear understanding of market needs and future trends. EDX Markets, with its crypto exchange and clearinghouse built on tested TradFi best practices, aligns with our vision of a more mature and accessible crypto market for institutional investors.

 

We believe EDX Markets sets itself apart from other exchanges with its non-custodial model, robust clearinghouse operations, and liquidity provision from leading TradFi institutions. Segregating the exchange from custody function removes a layer of counterparty risk for institutions, while offering a level of flexibility unmatched by other marketplaces. Via its clearinghouse, EDX also significantly reduces the amount of capital institutions need for trading and daily settlement. Finally, with global leaders in liquidity provision like Citadel Securities and Virtu Financial backing the exchange, we believe EDX is poised to become one of the most liquid crypto venues in the world.  

 

The EDX team blends technological expertise with deep market understanding, led by CEO Jamil Nazarali. Armed with decades of experience in traditional market making, most recently as Global Head of Business Development at Citadel Securities, We believe Jamil is the ideal leader to introduce TradFi market principles to crypto. His vision is supported by a team with decades of experience across a range of TradFi, tech, and crypto companies, including Fidelity Digital Assets, CBOE Digital, ISE, the OCC, Coinbase and more. 

 

We’re excited to co-lead the Series B round for EDX Markets alongside Sequoia Capital, and join other strategic partners like Citadel Securities, Virtu Financial, Fidelity Digital Assets, and Charles Schwab on the board. We believe in EDX’s potential to redefine institutional crypto trading and are excited to support their journey towards integrating institutional capital into the crypto market.

 

Learn more about EDX Markets and explore potential opportunities here.