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August 24, 2023

Crypto Exchange Backed by Fidelity, Citadel Securities and Charles Schwab Set To Use Anchorage Digital As Custodian

By Rhodilee Jean Dolor

A new crypto exchange supported by the world’s biggest financial institutions is tapping into the digital asset management services of the crypto platform Anchorage Digital.

In a statement, EDX Markets (EDX) says Anchorage Digital will be the custody provider of its clearinghouse arm, EDX Clearing, which is set to launch later this year.

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EDX CEO Jamil Nazarali says the decision to partner with the San Francisco-headquartered digital custodian takes into account that Anchorage Digital’s crypto-native bank has a banking charter from the Office of the Comptroller of the Currency (OCC), which regulates national banks in the US.

“Anchorage Digital has a robust security, governance, risk and compliance framework, which will provide a best-in-class solution to meet the needs of our institutional client base. As the only federally chartered crypto bank in the US, Anchorage Digital Bank is the ideal partner to support EDX’s build of a robust and compliant clearinghouse business.”

EDX launched trading in June with the backing of a group of financial titans that include Citadel Securities, Fidelity Digital Assets, Virtu Financial and Charles Schwab, Sequoia and Paradigm.

EDX Clearing will settle trades matched on its exchange, which currently supports four cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH). The clearinghouse will use Anchorage Digital Bank for custody of traded assets.

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