EDX Markets CEO Hails Larger Opportunities Outside US Following Crypto Exchange Expansion to Singapore
An exclusive interview captured on Friday, February 9, published by DL News, illustrates EDX chief executive Jamil Nazarali revealing expansion into Singapore. The chief at the Wall Street-backed exchange affirmed the EDX exchange is expanding to Bitcoin derivatives.
Nazarali chief shows that the EDX is set to rival BitMEX and OKX crypto exchanges.
Nazarali informed the DL News that EDX Markets is set to establish a substantial footprint in Singapore’s markets. The move is to place the crypto exchange backed by various Wall Street giants into direct competition with established crypto exchanges in Singapore.
EDX Markets Expanding in Singapore
EDX Markets is leveraging the backing from Fidelity Digital Assets, Charles Schwab, and Citadel Securities and harbors plans to enter the crypto derivatives market.
Nazarali explained that the derivatives segment comprises the Ethereum and Bitcoin-based futures contracts as the dominant products accounting for three-quarters of the entire crypto market as per the CCData.
The EDX Market’s entry into derivatives is attracted by the sector’s increased activity. In particular, the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Traded (ETFs) on January 10 pushed the derivatives trading volume to over 35%. The EDX Markets chief admits challenges in playing within the Singapore derivatives from the US base.
Nazarali iterated that the move outside the US will enable EDX Markets to list multiple tokens, particularly those with regulatory clarity. The executive indicates that the opportunity outside the US is more significant and unexploited.
Perpetuals Opportunity
Nazarali hails crypto derivatives as offering a robust market within the US. He cited the case of CME Group, which, following the Bitcoin futures contracts unveiled in 2017, currently executes $4 billion daily trades.
Nazarali indicated that unveiling a Singapore-based exchange is set to present an opportunity for perpetual futures. The EDX Markets is set to offer the popular derivative for crypto assets, tapping leverage to optimize returns.
Perpetual contracts allow investors to bet on the future prices of crypto assets. The product will enable the investor to take advantage of automatic rollover investments upon the expiry of the term. Nazarali admits that such is not available within the US.
EDX Markets will compete against OKX and BitMEX, which operate within the Asia markets. The two crypto exchanges have established leading franchises within the crypto derivatives space, rivaling the Binance.
Singapore Advanced Regulatory Framework
Nazarali hailed the Singapore government for establishing a strong regulatory framework, affirming its position as a global center for financial capital and talent supply.
EDX targets securing approval for its application placed before the Monetary Authority of Singapore (MAS) within 18-24 months.
Nazarali confessed that clients desiring EDX Markets are pushing to unveil an international exchange platform for trading, given the limitations imposed on the US marketplace.
Nazarali disclosed that the US platform only offers three unique coins available for trading – Litecoin (LTC), Ether (ETH), and Bitcoin (BTC). The EDX Markets chief considers the list narrow due to the regulatory uncertainty within the US, where cryptocurrencies are classified as securities. Such classification is disputable.
Wall Street Eyes Bigger Role in Expanding Crypto
Nazarali’s announcement of EDX Markets expanding into Singapore underscores the more significant role that Wall Street would play in crypto. The executive laments that regulatory conservatism among the Wall Street firms triggered the delay portrayed by institutional investors within the crypto markets.
Nazarali reflected on the concerns of traditional finance (TradFi) firms regarding the crypto exchanges. He indicated that such problems were evident even before the implosion of FTX in November 2022 and the enforcement actions imposed against Binance.
Nazarali explained that EDX Markets arose from the need to develop a trusted platform for the institutional players while integrating features of the TradFi exchanges.
The EDX Markets chief admitted that the platform’s Asian institutional customers indicated their displeasure with the existing alternatives. Nonetheless, the Asian customers illustrated that they have better liquidity.
Given its profile and the parties backing the exchange, the Asian customers expressed interest in EDX if it built a platform of mass liquidity.
Nazarali reiterated the existence of solid demand for the non-custodial crypto exchanges. He illustrated that the Binance Web3 wallet has targeted such demand since its unveiling last November. The product is non-custodial and interfaced with the Binance application.
The move by Binance illustrates that many institutional clients need to be more interested in custody assets services on the usual Binance crypto exchange.
Editorial credit: Mojahid Mottakin / Shutterstock.com
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