EDX Shifts Custodial Partnership From Paxos to Anchorage

• EDX, a crypto exchange backed by prominent financial institutions, has ended its planned partnership with Paxos and is now close to finalizing an agreement with Anchorage Digital.
• Anchorage Digital holds a bank charter from the Office of the Comptroller (OCC), making them a highly reputable custodian in the industry.
• EDX’s non-custodial model necessitates a reliable custodial partner to ensure the security and integrity of clients’ assets.

EDX Shifts Custodial Partnership

EDX, a crypto exchange backed by prominent financial institutions like Charles Schwab, Fidelity, and Citadel Securities, has reportedly severed its planned partnership with Paxos and is now close to finalizing an agreement with Anchorage Digital.

Anchorage Digital as Custodian

Anchorage Digital, a San Francisco-based cryptocurrency custodian, is now the frontrunner to fill the role that Paxos once occupied. The firm holds a bank charter from the Office of the Comptroller (OCC), making it highly reputable in the industry. They have committed to rectifying any issues identified by OCC in 2021 and implemented staff reductions in March this year despite achieving high valuation after their successful funding round in 2021.

Custodial Solution for Non-Custodial Model

EDX operates on a non-custodial model which requires them having access to reliable custodians to ensure safety of assets held by customers during transactions. As such selection of custodians holds paramount importance for EDX. A spokesperson from Paxos commented that they are enthusiastic about EDX’s project and hope to support their customers when more banks join their platform.

Official Confirmation from EDX Website

A visit to EDX’s website confirms Anchorage’s presence as listed partner while Paxos is absent from list of partners highlighting that new partnership has been finally confirmed officially by EDX itself.

Conclusion

The severing of contract with Paxos and move towards Anchorage Highlight how important it is for companies like EDX who operate under non-custodial models having access reliable custodies who can allow safe transactions without compromising customer assets‘ safety or data integrity at any point during transaction process..