Citadel's EDX Joins With Anchorage Digital to Shake-Up Crypto Custody – Coinbase and Galaxy Institutional Business Threatened?
EDX Markets, a prominent institutional crypto exchange company, announced on Tuesday a collaboration with Anchorage Digital, a regulated crypto platform renowned for its comprehensive financial services and infrastructure solutions.
Anchorage will assume the role of custody provider for EDX's clearinghouse venture, known as EDX Clearing, which is scheduled for launch later this year.
Jamil Nazarali, CEO of EDX, highlighted in the press release that the company remains "dedicated to transplanting the most effective structures from traditional finance into the digital asset landscape." Nazarali also emphasized Anchorage's robust security, governance, risk, and compliance framework, which he believes will deliver a “best-in-class solution to address the needs of its institutional client base.
A clearinghouse is a central intermediary that guarantees the integrity and efficiency of trade settlements. It is also meant to ensure a secure environment for institutional investors by minimizing counterparty risk and optimizing transaction processes.
EDX’s announcement is the exchange’s latest move to raise standards in the crypto industry and will likely help the exchange carry further favour with US regulators, who have been clamping down on the crypto industry this year.
Most of EDX’s major competitors in the US, most notably Coinbase, provide digital asset exchange, custody and settlement all under the same roof. But in wake of the collapse of FTX last year, some view a centralized business model as unsustainable, due to a combination of heightened scrutiny from regulators and damaged trust from investors.
By separating the roles of exchange and custody in a way more aligned with traditional finance, EDX could be seen as marking
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