CoinDesk
EDX Markets, an institution-only crypto trading platform, closed a $76 million Series C led by Japan's SBI Holdings, with proceeds earmarked for product development and international expansion.
EDX runs a marketplace that splits trading from custody and settlement via a central clearinghouse, a structure designed to cut counterparty risk by mirroring how traditional finance handles order flow. The company launched in 2023 with backing from Citadel Securities, Fidelity Digital Assets, Charles Schwab, Paradigm and Sequoia Capital, and is now extending beyond spot with FlowConnect, a crypto-as-a-service offering that lets financial firms white-label trading for their own clients. In April, EDX applied to the Office of the Comptroller of the Currency for a U.S. national trust bank charter; if approved, EDX Trust would deliver regulated custody, clearing, settlement and risk management.
Why it matters
SBI Holdings is rapidly becoming one of Japan's most consequential crypto operators, and its lead position here is a signal, not a passive check. SBI VC Trade already distributes Ripple's RLUSD stablecoin in Japan, SBI Shinsei Trust Bank recently issued the yen stablecoin JPYSC with Startale Group, and SBI agreed last month to acquire Bitbank for roughly 46.7 billion yen ($289 million). A Series C anchored by that balance sheet blurs the line between EDX's U.S. institutional buildout and a Tokyo-led crypto conglomerate assembling rails across custody, stablecoins and exchange venues.
Market impact
The combination of FlowConnect, the OCC charter application and a deep-pocketed Japanese lead sets up EDX as one of the few venues deliberately positioned to serve regulated institutions end-to-end. The structure is built to win mandates from banks and brokerages that need counterparty segregation and trust-grade custody before they touch client crypto exposure. Capital and clearing architecture have moved ahead of any single product launch, and the next checkpoint is the OCC's response to the charter bid.
Frequently asked questions
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What is EDX Markets and who backs it?
EDX Markets is an institution-only crypto trading platform that separates trading from custody and settlement through a central clearinghouse. It launched in 2023 with backing from Citadel Securities, Fidelity Digital Assets, Charles Schwab, Paradigm and Sequoia Capital.
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How much did EDX raise and who led the round?
EDX raised $76 million in a Series C funding round led by Japan's SBI Holdings, with proceeds earmarked for product development and international expansion.
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Why is SBI Holdings leading an EDX funding round?
SBI has become one of Japan's most active crypto operators, distributing Ripple's RLUSD through SBI VC Trade, issuing the JPYSC yen stablecoin via SBI Shinsei Trust Bank, and agreeing to acquire Bitbank for 46.7 billion yen ($289 million). A lead position in EDX extends that buildout into U.S. institutional…
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What is FlowConnect and how does EDX's clearinghouse model work?
FlowConnect is EDX's crypto-as-a-service product that lets financial firms offer crypto trading to their own clients. EDX routes orders through a central clearinghouse that separates trading from custody and settlement, a structure designed to reduce counterparty risk by mirroring traditional finance.
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What is EDX's U.S. national trust bank charter application?
EDX applied to the Office of the Comptroller of the Currency in April for a national trust bank charter. If approved, EDX Trust would offer regulated custody, clearing, settlement and risk management services to crypto clients.
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