Fidelity, Charles Schwab, and Citadel Launch Non-Custodial Centralized Crypto Exchange: EDX

Fidelity, Charles Schwab, and Citadel have launched a non-custodial centralized exchange called EDX. EDX operates like traditional exchanges, with a separate custodian holding customer assets and API access for trading. Unlike exchanges like Coinbase or Kraken, EDX does not require customers to deposit assets into wallets controlled by the exchange. Instead, EDX uses third-party banks or custodians to hold customer assets. The purpose of this model is to separate exchange duties and custodian duties, which is common in traditional finance but not in the crypto world. EDX is primarily targeted at traditional custodians and not retail investors. The exchange is highly compliant and offers a limited number of tokens, including Bitcoin, Ether, Litecoin, and Bitcoin Cash. EDX aims to avoid trading assets without regulatory clarity. Paradigm is an investor in EDX.

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