- EDX Markets has partnered with Anchorage Digital, a regulated crypto platform, for its clearinghouse division, EDX Clear.
- The partnership aims to integrate traditional finance structures with the digital asset ecosystem, providing secure and compliant trade settlement.
- EDX Markets launched in June, allowing institutional clients to trade four crypto assets: bitcoin, ether, litecoin, and bitcoin cash.
EDX Markets, an institutional crypto exchange that launched earlier in June, has announced a collaboration with Anchorage Digital as the custody provider for its upcoming clearinghouse division, EDX Clearing.
Anchorage Digital is a regulated cryptocurrency platform that provides institutions with financial services and infrastructure solutions. The collaboration aims to connect traditional finance market structures to the digital asset ecosystem.
A clearinghouse is a financial intermediary that helps two parties settle trades in various markets such as stocks, bonds, derivatives, and other securities. Its primary responsibilities are to ensure the smooth execution of trades and to reduce the risk of loss due to any unfulfilled obligations.
In a press release, EDX CEO Jamil Nazarali emphasized the significance of the collaboration,
“Anchorage Digital’s solid security, governance, risk, and compliance framework are unmatched,” he said. “Being the only federally chartered crypto bank in the U.S., Anchorage Digital is the perfect collaborator to bolster EDX’s goal of building a robust, compliant clearinghouse operation.”
Diogo Mónica, President and Co-Founder of Anchorage Digital, agreed with Nazarali. He stated that learning from traditional finance is critical for the next stage of institutional crypto evolution. “Our experience has shown that it’s not only feasible but also crucial to keep custody and exchange functions separate for institutions,” Mónica said.
Institutional Backing
A consortium of major financial institutions has backed EDX Markets, which began trading in June 2023. Citadel Securities, Charles Schwab, Fidelity Digital Assets, Virtu Financial, Sequoia, Paradigm, and others are among the notable backers.
The upcoming EDX Clearing will settle trades that have been matched on the main EDX platform. As a result, the settlement process will be streamlined, promoting capital and operational efficiency.
Anchorage Digital Bank will act as the custodial entity for the assets traded, providing EDX exchange members with a secure foundation.
Anchorage Digital, which was founded in 2017, offers a wide range of services, including secure custody, regulatory compliance, and platform capabilities. Meanwhile, EDX Markets is attempting to position itself as a digital asset marketplace tailored to crypto-native firms and top financial institutions.
