SBI invests $76 million in EDX Markets

Japan’s SBI Holdings has committed $76 million to EDX Markets in a Series C equity funding round, giving the institutional crypto trading platform fresh capital to expand its trading, clearing and settlement services for major financial firms.

EDX chief executive Acuña-Rohter said SBI was the sole participant in the round. The funding deepens the relationship between the Tokyo-based financial services group and EDX, a company built around a market structure that borrows heavily from traditional finance while applying it to digital assets.

The new capital will be used to scale product development, expand global operations and strengthen EDX’s presence in the Asia-Pacific region, where demand for regulated digital asset services has continued to grow. The company is also moving ahead with new products, including FlowConnect, a crypto-as-a-service platform designed to let other businesses offer digital asset trading through EDX’s technology.

The deal places SBI among the most active large financial groups backing regulated crypto market infrastructure. It also gives EDX a stronger partner in Asia as the company tries to win business from banks, brokers, asset managers and other institutions that want access to digital assets without relying on market structures that differ sharply from the systems used in stocks, bonds and foreign exchange.

SBI becomes sole backer of the Series C round

The $76 million Series C round stands out because SBI was the only participant. Earlier EDX funding rounds included well-known financial and venture names such as Charles Schwab, Citadel Securities, Fidelity Investments, Sequoia Capital and Paradigm, although the financial terms and valuations from those earlier rounds were not disclosed.

EDX was founded in 2022 and has positioned itself as a digital asset marketplace for institutional users. Its model is based on separating trading, clearing and settlement functions, an approach common in traditional markets but still developing in crypto.

That separation is important because it is intended to reduce counterparty risk. In simpler terms, it aims to avoid a structure in which one platform controls too many parts of a transaction. Traditional financial institutions often prefer systems where different entities handle execution, clearing and custody, creating clearer checks and balances.

Acuña-Rohter said the partnership with SBI would help EDX grow in Asia-Pacific while reinforcing the company’s infrastructure for institutional-grade digital asset services. The region has become a major target for companies building regulated crypto products, helped by rising adoption, clearer rules in several jurisdictions and interest from established financial firms.

EDX focuses on traditional market structure

EDX’s business model reflects a wider shift in digital assets. After several years in which crypto trading was dominated by vertically integrated platforms, many larger financial firms are pushing for infrastructure that looks more like the systems they already use.

In traditional markets, a trade often involves separate parties for execution, clearing, settlement and custody. That structure can help reduce operational and credit risk because no single party is responsible for every part of the process. EDX is trying to apply that framework to digital assets.

For institutional traders, the issue is not just access to bitcoin, ethereum or other crypto assets. It is also about how trades are processed, how assets are held, how risks are managed and how compliance obligations are met. A platform that offers familiar market architecture may be more appealing to large institutions than one that requires them to adapt to less familiar arrangements.

The latest funding round will support that strategy. EDX said the capital will go toward product development and broader market expansion, with Asia-Pacific playing a central role. The company is also seeking to strengthen its clearing and settlement capabilities, areas that are increasingly important as banks and other regulated financial firms explore digital asset services.

SBI expands its digital asset activity

SBI’s backing of EDX follows a series of moves by the Japanese financial group in regulated digital assets. The company has recently increased its activity in stablecoins and compliant digital finance products.

SBI has launched JPYSC, a yen-denominated stablecoin supported by a Japanese trust bank. A yen-based stablecoin could be useful for payments, settlements and trading activity that requires a digital asset linked to Japan’s currency.

The group also manages the domestic issuance of dollar-backed stablecoins RLUSD and USDC. That role reflects SBI’s broader effort to support digital tokens that meet regulatory expectations while serving practical use cases in payments and markets.

For SBI, the EDX deal fits into a larger strategy. Rather than focusing only on crypto prices, the company is placing capital into the infrastructure that could support future trading activity. That includes stablecoins, custody, clearing and regulated market services.

Japan has also become a more important market for digital finance because of regulatory changes. Policymakers have been working to bring digital assets closer to the country’s established financial framework. Reclassifying digital assets under financial market rules would align parts of the sector more closely with stocks and bonds, creating a clearer framework for firms that need regulatory certainty.

Tax reform has also been discussed, including proposals for a more favorable flat rate on gains. Such changes, if implemented, could make the market easier for traders and institutions to navigate.

FlowConnect opens EDX technology to other firms

Alongside the Series C funding, EDX has introduced FlowConnect, a crypto-as-a-service platform that allows other businesses to offer digital asset trading products.

The product is designed for firms that want to provide crypto trading access without building the entire technical and operational stack themselves. Through FlowConnect, financial businesses could embed digital asset trading into their own customer platforms while relying on EDX infrastructure behind the scenes.

This type of service is part of a wider move toward embedded digital finance. Banks, brokers, fintech firms and wealth platforms increasingly want to offer digital asset access in a controlled way. Building that capability internally can be expensive and time-consuming, especially when risk management, regulatory compliance and settlement systems are involved.

FlowConnect could help EDX reach a wider market because the company would not need to rely only on direct users of its exchange-style marketplace. Instead, it could power crypto trading services offered by other businesses.

The blockchain-as-a-service and crypto-as-a-service segments have attracted attention because they allow traditional firms to add digital asset functions while outsourcing some of the complexity. For EDX, that model could create a broader distribution channel and deepen its role as infrastructure provider rather than only a trading venue.

EDX seeks a national trust bank structure

EDX has also filed to establish EDX Trust, a proposed national trust bank in the United States. The entity would provide regulated digital asset custody, clearing and risk management services.

The filing is important because custody remains one of the biggest issues for traditional financial firms entering digital assets. Large institutions typically require strict rules around asset protection, segregation, oversight and operational controls. They also need to know which regulator is responsible for supervising a service provider.

By seeking a national trust bank charter from the Office of the Comptroller of the Currency, EDX is trying to position EDX Trust as a federally regulated provider. A national trust bank structure could help the company serve large financial firms that require a high level of regulatory oversight before using digital asset infrastructure.

The trust bank plan also matches EDX’s broader model of separating functions. Custody and settlement would sit within a regulated structure, while trading activity would operate through the marketplace. This arrangement is intended to look more familiar to banks and asset managers than the all-in-one model that has often defined crypto trading.

For EDX, approval would not only add a custody solution. It could also strengthen the company’s credibility with regulated firms that want clear rules and a defined supervisory framework.

Asia-Pacific becomes a key growth target

The SBI funding gives EDX a stronger route into Asia-Pacific, a region that has become one of the most important markets for digital asset growth.

Market estimates cited across the sector suggest the Asia-Pacific blockchain market could grow sharply over the second half of the decade, rising from tens of billions of dollars in value in 2025 to several hundred billion dollars by 2030. The region includes major financial centers such as Japan, Singapore, Hong Kong, South Korea and Australia, many of which have been developing rules for digital asset trading, tokenization, payments and custody.

Japan is especially important because its financial system is large, its regulatory framework is becoming more structured and major domestic companies are active in the sector. SBI’s involvement could help EDX build relationships with regional financial institutions that might otherwise be cautious about working with a newer U.S.-based digital asset platform.

Asia-Pacific also has strong retail and institutional activity in digital assets, although regulatory approaches differ widely by country. Some jurisdictions have emphasized licensing and consumer protection, while others have focused on tokenization, stablecoins or central bank digital currency experiments.

For companies such as EDX, the opportunity lies in serving regulated firms that want exposure to digital assets but need systems that meet compliance standards. That requirement is likely to become more important as the market moves beyond simple spot trading and toward clearing, settlement, custody and embedded services.

Funding arrives during a fragile market period

The funding comes at a time when broader crypto market sentiment remains fragile. Bitcoin has faced periods of heavy selling pressure, and U.S. spot bitcoin ETFs have seen large outflows during recent market weakness. Sentiment indicators have also pointed to caution among traders.

That contrast is notable. Short-term price action has been volatile, but large financial firms continue to put capital into digital asset infrastructure. The SBI-EDX deal suggests that some institutions are focused less on immediate market direction and more on the long-term systems needed for regulated participation.

Infrastructure funding often moves on a different timeline from token prices. Trading platforms, custody firms, stablecoin issuers and clearing providers are built for expected future activity, not just current market conditions. If digital assets become more integrated with traditional finance, companies that control compliant market infrastructure could become more important.

The same pattern has appeared in other areas of digital finance. Tokenization of real-world assets, stablecoin settlement, blockchain-based payments and institutional custody have continued to develop even during periods of weak market sentiment.

A bet on regulated market plumbing

SBI’s $76 million commitment to EDX is ultimately a bet on market structure. The funding supports a platform designed to make digital asset trading look and feel more like traditional finance, with separate roles for trading, clearing, settlement and custody.

For EDX, the capital provides room to expand products, pursue Asia-Pacific growth and continue its U.S. trust bank plan. For SBI, the deal adds to a growing portfolio of regulated digital asset initiatives, including yen- and dollar-linked stablecoin activity.

The timing also reflects a broader industry shift. Crypto markets are no longer being shaped only by token launches and price cycles. Increasingly, the focus is on the systems that allow banks, brokers and other regulated financial firms to participate safely and at scale.

If EDX can secure the regulatory structures it is seeking and turn SBI’s regional backing into commercial growth, it could become a more important bridge between traditional finance and digital assets. The company’s next challenge will be execution: expanding into new markets, winning institutional clients and proving that its model can handle the operational demands of a larger, more regulated crypto trading environment.