EDX Markets has partnered with Anchorage Digital to provide clearing house custody services
Date: 2023-08-22 Author: Karina Ziganova Categories: BUSINESS
EDX Markets, an institutional crypto exchange launched on June 20, 2023, has announced its partnership with Anchorage Digital as the custodial provider for its future clearing house arm, EDX Clearing.
Anchorage Digital is a regulated crypto platform that offers financial services and infrastructure solutions for institutions. The partnership aims to connect traditional financial market structures with the digital asset ecosystem.
A clearing house is a financial intermediary that facilitates settlements between two parties in various markets such as stocks, bonds, derivatives, and other securities. Its main role is to ensure the smooth execution of trades and reduce the risk of loss resulting from any outstanding obligations.
Jameel Nazarali, CEO of EDX, highlighted the importance of the partnership in a press release. “Anchorage Digital's robust security, governance, risk management, and compliance framework is second to none,” he said. “As the only federally registered crypto bank in the US, Anchorage Digital is the perfect partner to help achieve EDX’s goal of building a trusted, compliant clearing house.”
Diogo Monica, co-founder and president of Anchorage Digital, echoed Nazarali's sentiment. He noted that the use of traditional finance is critical to the next evolution of institutional cryptocurrency. “Our experience has shown that it is not only possible, but essential, to separate custody and exchange functions for institutions,” Monica said.
institutional support
EDX Markets, which began trading in June 2023, is backed by a consortium of major financial institutions. Notable sponsors include Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm and more.
Upcoming EDX Clearing is for the settlement of trades that match on the main EDX platform. Thus, it will simplify the settlement process, contributing to capitalization and operational efficiency. Anchorage Digital Bank will act as custodian of the tradable assets, providing a secure foundation for members of the EDX exchange.
Founded in 2017, Anchorage Digital boasts a wide range of services including secure storage, regulatory compliance, and platform capabilities. Meanwhile, EDX Markets aims to position itself as a digital asset marketplace designed for both crypto firms and leading financial institutions.
