EDX swaps Paxos for Anchorage as custodial partner, sparking buzz

By Lola Coin Jun 28, 202370Views

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Crypto exchange EDX, backed by financial institutions like Charles Schwab and Fidelity, has reportedly ended its planned partnership with Paxos and is now close to finalizing an agreement with Anchorage Digital. Last year, EDX had announced collaboration with Paxos for custodial services, but has now chosen Anchorage Digital as the frontrunner for this role. Anchorage Digital, a San Francisco-based crypto custodian, holds a bank charter from the Office of the Comptroller, making it a reputable choice despite facing criticism in 2021 for anti-money laundering controls. EDX’s CEO confirmed engagement with a new custodian but did not disclose their identity. The decision is crucial for EDX’s non-custodial model as it requires a reliable partner to ensure asset security. Moreover, Paxos has faced regulatory challenges recently, including a Wells notice from the SEC. Paxos expressed preparedness to defend itself in court.

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