EDX, a recently launched cryptocurrency exchange with backing from established financial giants like Citadel Securities, Fidelity Digital Assets, and Charles Schwab, is reportedly making preparations to switch its custody provider. The exchange is moving away from Paxos Trust and opting for Anchorage Digital, aligning with its non-custodial business model aimed at eliminating conflicts of interest.
EDX facilitates trading of four major cryptocurrencies: Bitcoin, Ether, Litecoin, and Bitcoin Cash. Notably, since its inception, Bitcoin Cash (BCH) has experienced a significant surge, with a 70.43% increase in just one week and a remarkable 1 01.36% increase over the past month.
Last October, shortly after announcing its launch, EDX partnered with Paxos to facilitate custody and wallet infrastructure for digital assets. However, in response to the SEC's proposal to enforce stricter custody regulations on cryptocurrency firms, EDX h as decided to shift its focus towards non- custodial offerings. A Paxos spokesperson expressed enthusiasm about EDX's direction and expressed a desire to support EDX clients with their regulated custody services as more banks and brokers join the platform.
Paxos, a blockchain infrastructure platform, holds a notable BitLicense issued by the New York Department of Financial Services. It was reportedly subject to investigation earlier this year for undisclosed reasons. While Paxos initially received preliminary conditional approval for a US banking license from the Office of the Comptroller of the Currency (OCC) in 2021. that approval is said to have expired by the end of March. On the other hand, Anchorage Digital became the first cryptocurrency company to receive the OCC National Trust Bank License in January 2021. The company faced regulatory challenges related to anti-money laundering deficiencies, resulting in a consent decree. Subsequently, Anchorage Digital formed a custody network in collaboration with prominent cryptocurrency exchanges such as Binance.US, CoinList, Blockchain.com,Strix Leviathan, and Wintermute.
In the future, EDX has plans to launch EDX Clearing, a clearinghouse designed to facilitate the clearing of trades executed on the EDX Markets platform.
