EDX Markets, an institutional crypto exchange launched on June 20, 2023, has announced its partnership with Anchorage Digital as the custody provider for its upcoming clearinghouse division, EDX Clearing.
Anchorage Digital is a regulated crypto platform that offers financial services and infrastructure solutions for institutions. The partnership aims to bridge traditional finance market structures with the digital asset ecosystem.
A clearinghouse is a financial intermediary that facilitates the settling of trades between two parties in various markets, such as stocks, bonds, derivatives, and other securities. Its primary roles are to ensure the smooth execution of trades and to reduce the risk of loss resulting from any unmet obligations.
Jamil Nazarali, CEO of EDX, emphasized the significance of the partnership in a press release. “Anchorage Digital’s solid security, governance, risk, and compliance framework are unmatched,” he said. “Being the only federally chartered crypto bank in the U.S., Anchorage Digital is the perfect collaborator to bolster EDX’s goal of building a robust, compliant clearinghouse operation.”
Diogo Mónica, Co-Founder and President of Anchorage Digital, echoed Nazarali’s sentiments. He remarked that taking cues from traditional finance is crucial for the next evolution of institutional crypto. “Our experience has shown that it’s not only feasible but also crucial to keep custody and exchange functions separate for institutions,” said Mónica.
Institutional support
EDX Markets, which commenced trading in June 2023, enjoys the backing of a consortium of major financial institutions. Notable backers include Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm, and more.
The upcoming EDX Clearing is designed to settle trades that are matched on the main EDX platform. By doing so, it will streamline the settlement process, promoting capital and operational efficiency. Anchorage Digital Bank will serve as the custodial entity for the assets traded, ensuring a secure foundation for EDX exchange members.
Established in 2017, Anchorage Digital boasts a wide range of services, including secure custody, regulatory compliance, and platform capabilities. EDX Markets, meanwhile, is seeking to position itself as a digital asset marketplace tailored to both crypto-native firms as well as top financial institutions.
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