Anchorage Digital has been chosen by cryptocurrency exchange EDX Markets, which will debut its clearinghouse operation later this year and is backed by Wall Street heavyweights like as Citadel Securities and Charles Schwab, to offer custody.
The clearinghouse will assist in settling trades that were matched on EDX. The “ideal partner,” according to EDX CEO Jamil Nazarali, is Anchorage, the only federally chartered cryptocurrency bank in the United States.
Because EDX is unique from other cryptocurrency exchanges in that it doesn’t keep users’ assets but instead requires users to employ financial intermediaries to acquire and sell crypto assets, the cooperation is essential for the exchange.
According to Diogo Monica, co-founder and president of Anchorage Digital, “Drawing from the blueprint of traditional finance will be critical to unlocking the next phase of institutional crypto.” “Anchorage Digital has shown that it is not only possible, but also necessary, for institutions to separate the custody and exchange functions.”
Earlier this year, EDX Markets launched its operations with support from financiers like Fidelity, Schwab, Paradigm, Sequoia Capital, and Citadel. The exchange now supports four tokens: bitcoin (BTC), ethereum (ETH), litecoin (LITE), and bitcoin cash (BCH). Once U.S. regulatory issues are clarified, additional tokens will be added.