EDX Markets raises $76 million in funding round led by SBI Holdings
EDX Markets, a crypto exchange backed by major financial institutions, has secured $76 million in a Series B funding round led by SBI Holdings. This capital injection underscores continued institutional interest in crypto infrastructure, particularly models that mitigate counterparty risk by separating trading and custody.
What happened
EDX Markets, a crypto exchange backed by major financial institutions, has secured $76 million in a Series B funding round led by SBI Holdings.
The read · Jul 7
With EDX Markets securing $76 million in funding for its institutional-focused, risk-mitigated crypto exchange, the question is how this development impacts the broader investment thesis for publicly traded crypto infrastructure providers.
Wrong if
Regulatory headwinds in the crypto space or a significant downturn in institutional interest could dampen the thesis for all related infrastructure plays.
CoverageSource: CoinDesk · Published here TUE, JUL 7 · 10:07 AM ET · the only report in this recordHow this is decided →
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The story1 min read
EDX Markets, a cryptocurrency exchange built for institutional investors, announced it has successfully closed a Series B funding round, raising $76 million. The round was led by Japanese financial services giant SBI Holdings, with participation from existing investors such as Citadel Securities, Fidelity Digital Assets, Charles Schwab, and Virtu Financial.
EDX's operational model is designed to address key concerns for institutional players in the crypto space. By separating the functions of trading and custody, and utilizing a central clearinghouse, EDX aims to significantly reduce counterparty risk, a critical hurdle for traditional finance firms looking to enter digital asset markets.
This funding round follows EDX's launch in June 2023 and the subsequent introduction of its clearinghouse, EDX Clearing, in October 2023. The new capital is earmarked for further development of its technology platform, expanding its product offerings, and extending its global reach. The continued backing from traditional finance heavyweights signals a growing belief in the need for regulated, risk-mitigated pathways for institutional engagement with digital assets, even as the broader crypto market navigates regulatory uncertainties.
While EDX itself is not publicly traded, the success of its funding round highlights ongoing trends in the digital asset infrastructure space. It suggests a potential uplift for publicly traded companies involved in providing similar institutional-grade solutions or those that might partner with or acquire such platforms in the future. The narrative of 'de-risking' crypto for institutions remains a powerful driver for capital allocation in this sector.
The read, in fullWhy it matters
While EDX Markets itself is private, its successful funding round validates the institutional demand for de-risked crypto infrastructure. This could provide a halo effect for publicly traded companies focused on similar solutions, though direct impact is hard to quantify without specific tickers.
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▲ The case it holds
The significant capital raised by EDX Markets from traditional finance giants reinforces the long-term institutional imperative for robust, compliant crypto trading and clearing solutions, potentially benefiting publicly traded firms in the sector.
▼ The case it breaks
Despite the funding, EDX Markets remains a private entity, and without specific publicly traded comparables or direct competitive pressure, the immediate, quantifiable impact on existing listed crypto infrastructure providers is limited and largely indirect.
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