Anchorage Digital Chosen as Custodial Partner for EDX’s Upcoming Clearinghouse

<p>EDX Markets has joined forces with Anchorage Digital, a
regulated cryptocurrency platform, to introduce a custody solution for EDX's
upcoming clearinghouse venture. In a statement released yesterday (Tuesday),
the firms said this strategic partnership aims to bring traditional market
structure standards to the digital asset space.</p><p>EDX is an institutional
crypto exchange that made its debut in June 2023. The exchange is backed by
major financial institutions, including Fidelity, Virtu Financial, Charles
Schwab, Sequoia, and Paradigm, among others. EDX decouples the role of custodian
and exchange to eliminate the need for clients to entrust their assets to a
single entity during trading.</p><p>EDX’s Non-Custodial Trading</p><p>According to Jamil Nazarali, the CEO of EDX, "(The
company) is committed to bringing the best traditional finance market
structures to the digital asset ecosystem, and this is the latest step in our
journey to promote a safer crypto marketplace. As the only federally chartered
crypto bank in the US, Anchorage Digital Bank is the ideal partner to support
EDX's build of a robust and compliant clearing house." </p><p>By replicating the
custody practices in traditional finance, EDX aims to provide a custody model
for institutional investors. According to the company, this enables investors
to choose the custodian they trust, ensuring that their assets are only tied up
for a short period of time.</p><p>In June, <a href="https://www.financemagnates.com/forex/brokers/thinkmarkets-launches-fx-trading-services-in-japan/" target="_blank" rel="follow">Finance
Magnates</a> reported that
EDX Markets had <a href="https://www.financemagnates.com/cryptocurrency/wall-street-giants-propel-edx-markets-into-digital-asset-trading-scene/" target="_blank" rel="follow">commenced
its trading operations</a> and
completed a new funding round that brought additional strategic investors on
board. As part of its forward-looking strategy, the company announced that it
would introduce EDX Clearing, a <a href="https://www.financemagnates.com/terms/c/clearing-house/">clearinghouse</a> aimed at enhancing the <a href="https://www.financemagnates.com/terms/s/settlement/">settlement</a>
of trades executed on the EDX platform.</p><p>Paving the Way for EDX
Clearing</p><p>Unlike traditional <a href="https://www.financemagnates.com/cryptocurrency/wall-street-giants-propel-edx-markets-into-digital-asset-trading-scene/" target="_blank" rel="follow">cryptocurrency</a> exchanges, EDX does not hold customers'
assets. Instead, users must navigate through financial intermediaries to buy
and sell crypto assets. According to the company's statement, this approach
alleviates a potential conflict of interest and enhances transparency in trading
activities.</p><p>EDX's asset portfolio
includes renowned cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH),
Litecoin (LTC), and Bitcoin Cash (BCH). On the other hand, Anchorage is a
regulated crypto platform that provides institutions with integrated financial
services and infrastructure solutions. The company was founded in 2017 and is
headquartered in San Francisco. It is backed by financial investors, such as
Andreessen Horowitz, Goldman Sachs, KKR, and Visa.</p>

This article was written by Jared Kirui at www.financemagnates.com.