Institutional Crypto Exchange EDX Lands $76M From SBI Holdings

EDX Markets, a cryptocurrency exchange focused on institutional investors, has raised $76 million in a Series C funding round led by Japan’s SBI Holdings, marking one of the larger funding rounds this year for crypto market infrastructure as institutional adoption continues to expand.

The company said Monday it will use the proceeds to expand its spot trading, clearing and settlement services, develop new products and grow internationally. EDX operates a US-focused institutional spot exchange and a Singapore-based perpetual futures venue for eligible non-US institutional clients.

The latest round builds on previous backing from traditional financial companies, including Citadel Securities, Fidelity Digital Assets, Virtu Financial and Charles Schwab, highlighting continued investor appetite for institutional crypto infrastructure despite a slower venture funding market.

Source: EDX Markets

EDX has quietly expanded its institutional footprint over the past year. In May, Ripple Prime integrated with the exchange, allowing institutional clients to access EDX’s spot and perpetual futures liquidity through Ripple’s prime brokerage platform, with the companies also planning to support RLUSD as a settlement and collateral asset.

The exchange has processed as much as $685 million in daily trading volume, underscoring growing demand for institutional crypto trading venues. 

Related: Ripple co-founder backs venture launched by US senator’s son: Report

Crypto infrastructure continues to attract capital despite bear market conditions

The latest funding round reflects continued investor interest in institutional crypto infrastructure, even as digital asset trading volumes have softened and venture funding remains below the industry’s 2021 peak. 

Investors have increasingly backed companies building trading, payments and settlement infrastructure, betting that institutional adoption will continue to expand as the US regulatory environment becomes more accommodating.

San Francisco-based Framework Ventures, an early investor in several crypto startups, recently raised $400 million for a new fund targeting frontier technologies, including blockchain networks and decentralized finance, according to Fortune.

Other crypto infrastructure startups have also secured fresh capital. Fomo, a crypto trading startup focused on cross-chain trading, recently raised $75 million at a $550 million valuation. Meanwhile, Trace Finance, a startup building stablecoin-based cross-border payment and settlement infrastructure for businesses, raised $32 million to expand its platform.

Magazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves