Welcome to the latest edition of At the Forefront: Fintech Conversations!
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In this installment, Forefront VP and Head of Content Sam Belden sits down with John Fennell, EVP and Chief Risk Officer at EDX Markets, and Gordon Wallace, President and Co-Founder of BlockFills, about their strategic partnership and how it’s advancing the institutional crypto space. They unpack how EDX and BlockFills are driving innovations that enhance liquidity, reduce counterparty risk and offer capital-efficient solutions for digital asset markets.
John Fennell kicked off the discussion with an overview of EDX Markets, an institutional-only cryptocurrency marketplace and clearinghouse focused on delivering competitive, transparent and liquid markets for digital assets. At its core, EDX provides resilient, capital-efficient settlement services designed to support institutional participants.
Fennell emphasized how crucial it is for EDX to establish strong relationships with market participants like BlockFills. These relationships are particularly valuable when EDX needs to acquire inventory or temporarily borrow assets, which is often necessary to meet liquidity demands. Beyond this, EDX’s collaboration with BlockFills extends to product design, where the teams co-develop solutions that better serve their mutual client base. BlockFills’ deep roots in traditional finance and its ability to adapt those practices to the crypto market make it an invaluable partner for EDX.
Next, Gordon Wallace highlighted how BlockFills is uniquely positioned for this collaboration given their background working with institutional and professional traders and their ability to bring over TradFi principles to the crypto markets. BlockFills specializes in both direct voice trading and API-based execution, providing key liquidity services and introducing clients to the innovative capabilities of EDX. Their nimbleness, early adoption of new technologies and deep understanding of both traditional finance and crypto market dynamics make them an ideal partner for EDX as they work to build the most robust liquidity ecosystem in the space.
John and Gordon then discussed how the true value of this partnership becomes evident during high-volume market days, where liquidity and timely settlement are paramount. EDX collaborates closely with BlockFills to establish cryptocurrency reserves, ensuring that these reserves remain insulated from price changes and are immediately available during volatile market conditions. This proactive approach to reserve management ensures that EDX can continue to offer leverage and capital-efficient services to its clients.
Moreover, when markets become volatile, BlockFills steps in to provide liquidity, ensuring that EDX can maintain its tight spreads and reliable trading conditions. Wallace explained that having a partner like EDX allows BlockFills to be flexible in responding to sudden market shifts. This flexibility includes offering additional settlement opportunities, which help increase turnover and ensure market stability.
Looking ahead, John shared that EDX is focused on continuing to deliver capital efficiencies while introducing new products that help clients hedge risk. Recently, EDX announced that it now accepts USDC as collateral and for settlement obligations, enabling settlements outside of traditional fiat rails — especially useful when markets are closed or in off-hours. BlockFills, a key early adopter of this new feature, is already taking advantage of these capabilities, improving their ability to manage risk and ensure liquidity even during off-hours.
Another major development for EDX is the launch of perpetual futures, an innovative product aimed at providing members with new options to hedge their risk in the spot crypto space. This move further establishes EDX as a leader in offering capital-efficient, market-leading solutions for institutional crypto trading.
BlockFills is also adapting to the changing landscape by focusing on stablecoins, which provide a more stable alternative to traditional fiat currencies. Wallace explained that expanding into regions with stricter capital controls, such as Brazil and Dubai, is an important part of their strategy. In these areas, the ability to bypass traditional fiat rails is critical to facilitating smooth trading. Additionally, BlockFills is expanding its regulated entity in London, further solidifying its global presence.
To dive deeper into this dynamic partnership, download the full case study here.
See below for a breakdown of what was discussed. Happy listening!
Timestamps:
1:28 – Overview of EDX Markets and what makes BlockFills a partnership fit
4:10 – About BlockFills and the value the firm has seen from working with EDX
7:47 – What the partnership looks like in action
10:15 – Communication dynamic between the two teams
13:08 – EDX’s future roadmap and how BlockFills will play into that vision
13:08 – How BlockFills is adapting to evolving market dynamics
