- Summary:
- EDX Clearing, EDX's institutional settlement arm will launch later this year, and Anchorage Digital will streamline the process for EDX users
In preparation for the debut of its clearinghouse service, EDX Clearing, later this year, institutional cryptocurrency exchange EDX Markets has announced a partnership with Anchorage Digital to act as its custody provider. The crypto exchange, which started its operations in June this year, says the collaboration will let EDX settle trades matched on its exchange via EDX’s clearinghouse.
Anchorage Digital partnership is a game changer for EDX
Anchorage Digital’s custody architecture improves the security of the market by dividing the roles of custodians and exchanges. EDX says its dedicated settlement arm, EDX Clearing will provide a more secure and streamlined trading environment for institutions by leveraging Anchorage Digital’s proven custody infrastructure.
All matched trades on EDX will be settled by EDX Clearing, streamlining the settlement process to save time and money. For EDX users who choose to have their traded assets held at Anchorage Digital Bank, EDX Clearing will be there to provide clearing services. Many experts agree that the key to unlocking the next wave of institutional crypto adoption is to learn from the playbook of traditional finance and perfect it. Additionally, this path relies heavily on the separation of custody and exchange function for institutions to address fears of possible misuse of investor funds.
Anchorage Digital provides a robust suite of secure custody, regulatory compliance, and platform capabilities via its US-based, one-and-only federally chartered crypto bank and its Singapore-based, equally secure, and service-oriented sister company, Anchorage Digital Singapore. EDX’s institutional customers may rest easy knowing this.
By adapting proven methods from established financial markets and adapting them to the unique needs of the cryptocurrency market, EDX hopes to make the trading of digital assets more secure, streamlined, and profitable. Currently, the company’s institutional clients have access to more than 40 liquidity platforms, and last month it added Talos to the equations. Citadel Securities, Fidelity Digital Assets, Virtu Financial, Charles Schwab, Sequoia, Paradigm, and other large financial institutions are among the many that have invested in the company.