EDX Markets Chooses Anchorage Digital as Crypto Custodian

EDX Markets Partners with Anchorage Digital as Digital Asset Custodian

EDX Markets, a cryptocurrency exchange backed by Charles Schwab and Citadel Securities, has announced a partnership with Anchorage Digital as its digital asset custodian. The exchange plans to use Anchorage Digital to settle trades through its clearinghouse business, which is set to launch next month. This move comes as EDX Markets aims to separate the roles of custodian and exchange, providing customers with more control over their assets.

Key Points:
– EDX Markets’ partnership with Anchorage Digital will allow it to settle trades through its clearinghouse business, which is set to launch next month.
– The exchange promotes itself as non-custodial, meaning it does not hold user funds, giving customers more control and trust.
– The exchange plans to explore adding other custodial partners in the future based on customer requests.
– Anchorage Digital offers custodial services through Anchorage Digital Bank, backed by Goldman Sachs and KKR & Co.
– This partnership aims to bring together the best of both worlds for crypto investors, combining the benefits of a custodian with the trading capabilities of an exchange.

EDX Markets CEO Jamil Nazarali stated that this partnership represents a market structure change for crypto investors, providing them with more choice and control over their assets. The collaboration with Anchorage Digital aligns with the exchange’s goal of offering tested, regulated solutions similar to those found in traditional financial markets.

Hot Take:

The partnership between EDX Markets and Anchorage Digital represents a significant development in the cryptocurrency industry. By separating the roles of custodian and exchange, EDX Markets allows customers to have more control over their assets and increases trust in the platform. This move aligns with the maturing nature of the crypto asset class and brings the benefits of traditional financial market structures to the crypto space. It will be interesting to see how this partnership evolves and if other exchanges follow a similar model in the future.