EDX Markets, a leading institutional crypto exchange, has announced its strategic partnership with Anchorage Digital, a regulated crypto platform. The collaboration aims to strengthen the clearinghouse division of EDX called EDX Clearing, bridging the gap between traditional finance markets and the digital asset ecosystem.
Jamil Nazarali, CEO of EDX, stated the importance of this partnership in a press release. He emphasized that Anchorage Digital’s solid security, governance, risk, and compliance framework were unparalleled. Being the only federally chartered crypto bank in the U.S., Anchorage Digital was identified as the perfect collaborator to enhance EDX’s mission of building a robust and compliant clearinghouse operation.
Diogo Mónica, Co-Founder and President of Anchorage Digital, echoed Nazarali’s sentiments by emphasizing the significance of taking cues from traditional finance in the institutional crypto space. Mónica mentioned that it’s not only feasible but crucial to keep custody and exchange functions separate for institutions. This approach ensures enhanced security and operational efficiency.
EDX Markets, which commenced trading in June 2023, is supported by a consortium of major financial institutions. Notable backers of EDX include Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm, and more. The upcoming EDX Clearing aims to streamline the settlement process by settling trades matched on the main EDX platform. This will promote capital and operational efficiency.
As part of the partnership, Anchorage Digital Bank will serve as the custodial entity for the assets traded on EDX. Anchorage Digital, established in 2017, offers a wide range of services, including secure custody, regulatory compliance, and advanced platform capabilities. Their expertise in custodial services ensures a secure foundation for EDX exchange members, maintaining the integrity of the traded assets.
EDX Markets aims to position itself as a comprehensive digital asset marketplace tailored to both crypto-native firms and top financial institutions. By leveraging the partnership with Anchorage Digital, EDX can offer enhanced clearinghouse operations and a secure environment for trading digital assets.
The partnership between EDX Markets and Anchorage Digital marks a crucial step towards building a robust and compliant clearinghouse division within the digital asset ecosystem. Their collaboration will enable institutional investors to transact with confidence and efficiency, bringing together the best practices of traditional finance with the innovation of the crypto space. With backing from major financial institutions and the expertise of Anchorage Digital, EDX is well-positioned to become a leading player in the institutional crypto market.
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