The Agency Encrypted Trading Platform EDX Markets disclosed that the company had completed the $76 million C round of financing, which was led by SBI Holdings. The company stated that the funds would be used for new product development and overseas expansion. EDX currently handles the major service clients, transactions, hosting and settlement separately.
Funds for product expansion
EDX states that the Platform handles the settlement process through the central clearing system to reduce the risk to the counterparty. This model is closer to the structure of the division of labour in traditional financial markets rather than concentrating transactions, trusteeship and settlements on the same platform.
According to the company, the latest financing will support the expansion of the product line and contribute to the growth of international business. In addition to spot transactions, EDX is also promoting the encryption service access product FlowConnect for financial institutions to help cooperating agencies provide encryption services to customers.
Applying for a US Trust Bank license
EDX applied to the U.S. Monetary Supervisory Authority (OCC) for a National Trust Bank licence in April this year. If approved, EDX Trust will provide supervised hosting, clearing, clearing and risk management services to encrypted customers.
This means that EDX not only wishes to retain the location of the existing trading platform, but also to complement the more valued infrastructure capacity of institutional clients. For the institutional market, hosting and liquidation arrangements are usually directly related to compliance access and financial efficiency.
SBI continues to expand encryption layout
In recent years, SBI Holdings has been one of Japan's financial groups that is more active in the field of encryption. Under its umbrella, SBI VC Trade has provided services related to Ripple’s RLUSD stabilization currency in Japan, and the SBI Newborn Trust Bank has been involved in the launch of the JPYSC.
Last month, the SBI also agreed to acquire the encryption exchange Bitbank with 46.7 billion yen to further expand its distribution in Japan's encryption market. The EDX award also shows continued investment in the institutional encryption market infrastructure.
Additional information:EDX came online in 2023, with early support from Citadel Securities, Fidelity Digital Assemblys, Charles Schwab, Paradigm and Sequoia Capital.