EDX Markets, a cryptocurrency exchange backed by leading financial institutions including Charles Schwab and Citadel Securities, has partnered with Partnering with Anchorage Digital, a digital asset platform and infrastructure provider, to strengthen its clearing and custody capabilities.
The partnership aims to facilitate seamless clearing of trades conducted on exchanges through EDX Clearing, ensuring improved capital and operational efficiencies.
Do Traditional Financial Practices Meet Institutional Cryptocurrency Trading?
Underscoring the significance of the partnership, EDX CEO Jamil Nazarali has confirmed that the exchange’s clearing operations will go live next month. He further claimed:
EDX is committed to bringing the best of traditional financial market structures to the digital asset ecosystem, and this is the latest step in our drive for a safer crypto market. Anchorage Digital has a strong security, governance, risk and compliance framework and will deliver best-in-class solutions to meet the needs of our institutional client base.As the only federally chartered cryptocurrency bank in the United States, Anchorage Digital Bank is the ideal partner to support EDX in building a robust and compliant clearinghouse business
On the other hand, Diogo Mónica, co-founder and president of Anchorage Digital, emphasized the importance of separating custody and exchange functions in institutional cryptocurrency exchanges. This collaboration is in line with EDX’s goal of advancing a more secure cryptocurrency market structure.
According to the announcement, the partnership ensures that institutions trading on EDX can have confidence in the integrity and security of their assets, thereby enhancing trust and regulatory compliance.
As the crypto industry grows, regulatory approval and compliance with strong security measures is critical. EDX’s partnership with Anchorage Digital facilitates compliance with US regulators.
By working with trusted custody partners, EDX aims to set a precedent for the industry and contribute to a more mature and secure cryptocurrency market ecosystem.
EDX, which began trading in June 2023, is backed by a consortium of major financial institutions including Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm, and other prominent players in the industry.
The participation of these established entities demonstrates the financial sector’s growing interest in and recognition of the developing digital marketplace.
Overall, the partnership represents a step forward in improving the credibility and efficiency of cryptocurrency transactions in the financial sector. With institutional support and a commitment to regulatory compliance, EDX and Anchorage Digital are paving the way for a more reliable and compliant trading environment.
Featured image via iStock, chart via TradingView.com