EDX Ditches Paxos for Anchorage, Finds Custodial Solution
• EDX has severed 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 it a highly reputable custodian in the industry.
• Paxos commented that EDX shifted its focus to a non-custodial offering upon launch, and hopes to support their customers with its regulated custody services.
Crypto Exchange EDX Shifts Custodial Partnership
EDX, a crypto exchange backed by prominent financial institutions, has reportedly severed its planned partnership with Paxos and is now close to finalizing an agreement with Anchorage Digital.
Paxos Had Proposed Arrangement
Last year, EDX had originally announced its collaboration with Paxos, a well-known blockchain firm headquartered in New York renowned for issuing the Binance stablecoin BUSD. Under the proposed arrangement, Paxos would have acted as the custodian for digital assets of EDX’s clients while also providing direct access to Paxos customers.
Anchorage Digital Becomes Frontrunner To Fill Role
Anchorage Digital, a San Francisco-based cryptocurrency custodian, is now the frontrunner to fill the role that Paxos once occupied. Anchorage Digital holds a bank charter from the Office of the Comptroller (OCC), making it a highly reputable custodian in the industry.
Criticism Faced By Anchorage Digital
While Anchorage Digital faced criticism from OCC in 2021 due to shortcomings in anti-money laundering controls, they have committed to rectifying these issues. In March they implemented staff reduction of approximately 20%, despite having achieved valuation exceeding $3 billion after successful funding round in 2021.
Paxos Comment On Severance Of Partnership With EDX
A Paxos spokesperson commented: “EDX shifted its focus to a non-custodial offering upon launch. We are highly enthusiastic about EDX’s project and hope to support their customers with our regulated custody services when banks and brokers join the platform.”