The second quarter of 2023 may be remembered as the moment the establishment commenced its veritable land grab for crypto according to a report from Genesis, an institutional digital assets financial services firm.
Genesis said in its Q2 Market Observations report that at the mid-point of 2023, the digital asset space has taken on a decidedly transitional feel awaiting the next watershed moment.
“Just as crypto mainstays like Coinbase rolled out new offerings, Q2 also heralded the arrival of an establishment armada which appears now to be docked on the shores of this asset class,” added Genesis. “We view this development as the omen of a bright future that foreshadows a restoration of access, a proliferation of fresh products/services, and an unblocking of legal logjams.”
The trading desk at Genesis observed an increase in client activity across segments which it said was bolstered by promising developments such as the favorable Ripple ruling, the launch of offshore futures by Coinbase, and the emergence of EDX Markets, the spot crypto trading platform backed by Citadel Securities, Fidelity and Schwab and which has partnered with Talos, which provides institutional trading technology for digital assets.
In July EDX Markets said in a statement it has integrated with Talos’ end-to-end order and execution management system (OEMS). By integrating with Talos, EDX Markets gains access to a network of more than 40 liquidity providers including exchanges, custodians, OTC desks and market makers.
Jamil Nazarali, chief executive of EDX Markets, said in a statement: “This collaboration broadens our range of liquidity options for clients, reinforcing our commitment to delivering a comprehensive and robust trading experience for both traditional financial institutions and crypto-native firms.”
Anton Katz, co-founder and chief executive of Talos, told Markets Media that EDX Markets is backed by institutional players, very similar to Talos’ backers and there is some overlap between their customers.
“We were in touch with the EDX team pretty early on and we also had client demand from our side to connect,” Katz added. “EDX definitely sends a signal that the market is becoming more regulated and institutionalised, which was one of our bigger bets.”
Katz continued that crypto is moving towards a more sophisticated, more regulated and more institutional market which is a step in the right direction. For example, the EDX offering is very familiar to institutional players by letting them match trades with other institutions with whom they have a counterparty relationship.
