EDX Markets, the institutional-only crypto trading venue that operates its own central clearinghouse, has closed a $76 million Series C funding round. The round was led by SBI Holdings, a Tokyo-listed financial conglomerate, which becomes a strategic investor in the exchange. The deal underscores continued appetite for regulated, institutional-grade crypto infrastructure even as retail markets face headwinds.
Why SBI Holdings
SBI Holdings is no stranger to digital assets. The group has been building out its crypto and blockchain businesses for years, including a joint venture with Ripple and its own crypto exchange in Japan. By taking a lead role in EDX's Series C, SBI gains a foothold in a U.S.-based platform designed specifically for asset managers, hedge funds, and other large traders. The investment also gives EDX a powerful partner in Asia, where institutional demand for crypto is growing.
What EDX Does Differently
EDX launched in 2022 with a model that sets it apart from retail-heavy exchanges like Coinbase or Binance. It operates a central clearinghouse, meaning it sits between buyers and sellers and guarantees trade settlement. That structure is familiar to traditional finance players and addresses a key concern: counterparty risk. The platform also offers non-custodial trading, so client assets never sit on the exchange itself. That design has helped EDX win business from firms that were wary of leaving funds on exchanges after the FTX collapse.
What the Funding Means
The $76 million round is sizable for an institutional crypto platform. It suggests that despite the bear market and regulatory uncertainty in the U.S., there is still strong investor belief in the long-term opportunity for crypto as an asset class for institutions. EDX has not disclosed its valuation, but the addition of SBI Holdings as a strategic backer gives it credibility in both the U.S. and Asian markets. The company has said it will use the capital to expand its product offerings and grow its team.
EDX has not announced a specific timeline for new products, but the funding should accelerate its roadmap. The exchange currently supports bitcoin, ether, and a handful of other tokens. With SBI's backing, it may look to add support for more assets or expand into derivatives. The next concrete milestone to watch is whether EDX files for a broker-dealer license or pursues a clearinghouse registration with the SEC — moves that would further differentiate it from competitors.
