Bloomberg: Crypto custodian Anchorage to partner with EDX Markets

Launched with the support of Citadel Securities, Fidelity and Charles Schwab, the Bitcoin exchange EDX Markets is in talks to partner with crypto custodian Anchorage Digital, Bloomberg reports.

According to the agency’s sources, the platform abandoned its previous agreement with Paxos, signed in October 2022.

Anchorage is already listed on the exchange’s site as one of its partners or service providers.

\”When EDX launched, it focused on a non-custodial offering. We welcome what the company is building and hope to support its clients with our regulated custody when banks and brokers join the platform,\” said a Paxos spokesperson.

The exchange quietly began operating in July. According to EDX’s statement, its approach is based on standard practices of traditional financial markets. The company does not hold client assets, but provides a trading venue for executing trades. The platform supports trading Bitcoin, Ethereum, Litecoin, and Bitcoin Cash in USD-denominated pairs on a 24/7 basis.

EDX does not serve retail investors directly. Only brokerage firms representing their clients can access the platform.

In 2021, Anchorage became the holder of the first federal cryptocurrency bank license in the United States.

In April 2022, the custodian faced accusations from the Office of the Comptroller of the Currency, a bureau of the U.S. Treasury, of violating the operating agreement. The regulator found Anchorage’s compliance-program coverage insufficient with regard to KYC procedures and monitoring for suspicious activity. According to the order, the crypto bank was required to remediate the identified deficiencies.

In March 2023, Anchorage announced it would lay off 20% of its staff as part of a restructuring.