Recently launched crypto exchange EDX Markets has entered into final talks with Anchorage Digital about a new partnership for the custody service. The platform has abandoned a previous plan to use stablecoin issuer Paxos as a third-party custodian. A potential partnership with Paxos would have allowed customer funds in the exchange to be taken under custody by Paxos and given Paxos customers direct access to EDX Markets. - Anchorage Digital has already been included in the list of partners as one of the vendors, while Paxos was excluded.
- EDX Markets only caters to institutional clients, and unlike existing crypto exchanges, it does not keep customer assets under its custody during trading.
- Instead, the platform aims to work with a third-party custodian, separating the crypto trading services from broker-dealer functions as in traditional finance (TradFi).
- Existing crypto exchanges, including Coinbase and Binance, frequently come under fire from regulators for failing to separate parts of their business like custody and trading.
- The companies backing EDX Markets include major TradFi giants, such as Citadel Securities, Fidelity Digital Assets, and Charles Schwab Corp.
EDX Markets officially went live earlier in June, nearly nine months after being announced. - The exchange offers trading only in Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH).
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