EDX Markets, a groundbreaking institutional crypto exchange, has announced a game-changing partnership with Anchorage Digital. The partnership will see Anchorage Digital, a regulated crypto platform known for its expertise in financial services and infrastructure solutions, become the custody provider for EDX Clearing, an upcoming division of EDX Markets.
The primary objective of this collaboration is to bridge the gap between traditional finance market structures and the rapidly evolving digital asset ecosystem. EDX Clearing, as a clearinghouse division, will act as a financial intermediary facilitating the settling of trades between two parties in various markets, such as stocks, bonds, derivatives, and other securities.
Jamil Nazarali, CEO of EDX, expressed his enthusiasm for the partnership, emphasizing that Anchorage Digital’s solid security, governance, risk, and compliance framework are unmatched. He believes that Anchorage Digital, being the only federally chartered crypto bank in the U.S., is the perfect collaborator to strengthen EDX’s vision of building a robust and compliant clearinghouse operation.
Diogo Mónica, Co-Founder and President of Anchorage Digital, echoed Nazarali’s sentiments, noting the importance of learning from traditional finance for the next evolution of institutional crypto. Based on their experience, Mónica emphasized that it is not only feasible but also crucial to separate custody and exchange functions for institutions.
EDX Markets, which began trading in June 2023, has garnered support from a consortium of major financial institutions. Renowned backers include Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm, and many others. This backing further solidifies EDX Markets’ position as a significant player in the institutional crypto space.
The upcoming EDX Clearing division is specifically designed to settle trades that are matched on the main EDX platform. By doing so, it will streamline the settlement process, leading to improved capital and operational efficiency for market participants. Anchorage Digital Bank will act as the custodial entity for the assets traded on EDX, providing a secure foundation for exchange members.
Anchorage Digital, established in 2017, has built a stellar reputation with its comprehensive range of services. These include secure custody, regulatory compliance, and robust platform capabilities. EDX Markets, on the other hand, aims to become a digital asset marketplace that caters to both crypto-native firms and top financial institutions, providing them with the necessary tools and infrastructure to thrive in the crypto market.
The partnership between EDX Markets and Anchorage Digital marks a significant milestone in the institutional crypto space. By leveraging Anchorage Digital’s expertise and secure custody solutions, EDX Clearing aims to revolutionize the clearinghouse operations, creating a seamless bridge between traditional finance and the digital asset ecosystem. With strong backing from major financial institutions and a commitment to robust compliance and security, EDX Markets is poised to become a leading force in the evolving landscape of institutional crypto trading.
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