The launch of the EDX Markets trading platform, supported by several large financial institutions, had a positive impact on the crypto market. The price of bitcoin hit a six-week high.

The official launch of the first trading sessions on the platform of the new digital asset exchange EDX Markets took place on Tuesday, June 20. The launch of EDX was backed by a consortium of major financial institutions including Citadel Securities, Fidelity, Charles Schwab, Paradigm, Sequoia Capital and Virtu Financial.

Unlike the practice of existing crypto platforms such as Coinbase and Binance, the activities of EDX Markets must be organized according to a “non-custodial model”. This means that the exchange will not hold clients’ digital assets on its balance sheet during trading, but will transfer this function to third-party custodians.

“In order for the digital asset class to evolve, market players must apply rules and investor protections similar to those in traditional finance,” explains Jamil Nazarali, CEO of EDX Markets.

According to Nazarali, this model is most consistent with the expectations of regulators: cryptocurrency exchanges should be separated from the functions of a broker-dealer.

The support of the crypto market from large institutional companies, coupled with the submission of applications by BlackRock and WisdomTree to launch spot exchange-traded funds of bitcoins in the United States, led to an upward rally of the first cryptocurrency by capitalization.

1541.png

As of 14:00 on Wednesday, June 21, Bitcoin has overcome the resistance at $28,000 and is trading on the border from $28,960 to $28,982. Thus, the cost of BTC has reached a six-week high. On a weekly observation period, the growth of the asset made up about 12%.

Earlier, MicroStrategy co-founder Michael Saylor said that the recent actions of the US Security and Exchange Commission (SEC) regarding crypto exchanges made it clear to the industry that it is doomed to be focused on bitcoin.