EDX Markets Raises $76M in Series C Led by SBI Holdings

EDX Markets, a digital asset technology provider that operates an institutional-only trading venue and a central clearinghouse, has closed a $76 million Series C funding round. SBI Holdings led the investment.

The company's platform separates trade execution from custody and settlement. A central clearinghouse nets trades between participants, reducing counterparty risk. EDX launched the clearinghouse in 2023 after initially offering only a matching engine. The model mirrors traditional market infrastructure, where central counterparties like the Depository Trust & Clearing Corporation guarantee settlement.

SBI Holdings is a Japanese financial conglomerate with a digital asset exchange, SBI VC Trade, and investments in blockchain infrastructure firms such as Ripple and Orbs. The firm led the Series C round, marking its largest crypto-related investment to date.

EDX Markets launched in 2022 with backing from a group that included Citadel Securities and Fidelity. Charles Schwab also participated. The venue began trading spot bitcoin and ether in mid-2023. The clearinghouse component was added later to address settlement risk, a key concern for institutional traders.

The company did not disclose the valuation or the specific use of proceeds from the round. EDX confirmed the funding in a statement. Other participants in the round were not named.

The round closed as institutional interest in digital asset trading infrastructure remains strong. Several large asset managers have filed for spot bitcoin ETFs, and traditional brokers are expanding crypto services. EDX's clearinghouse model is designed to comply with US securities regulations, positioning it to capture flow from firms that require a regulated venue.

The funding gives EDX capital to expand its clearinghouse, add new asset classes, and enter new markets, according to the company. The firm competes with other institutional platforms such as Coinbase Prime and Binance's institutional arm, though EDX's clearinghouse model is distinct.

SBI Holdings' involvement also signals a bridge between US and Japanese crypto markets. The Japanese firm has been expanding its global crypto footprint, and its investment in EDX could lead to partnerships or distribution agreements in Asia.

EDX Markets said the Series C round will support product development and market expansion. The company did not provide a timeline for new features or geographic growth.

The clearinghouse model reduces the capital that participants need to set aside for trades, because netting lowers the gross exposure. That efficiency is a selling point for hedge funds and asset managers that trade in size. EDX has said the model also simplifies compliance, since the clearinghouse handles settlement and reporting.

The round was led by SBI Holdings, with participation from existing investors, according to the company.