After launch on June 20th, EDX is already making changes in its service providers.
Just a week after its launch, cryptocurrency exchange EDX, which enjoys the backing of major traditional finance players like Citadel Securities, Fidelity Digital Assets, and Charles Schwab, is reportedly planning to shift its custody providers.
The firm is expected to transition from Paxos Trust to Anchorage Digital, aligning with its noncustodial business model aimed at eliminating conflicts of interest.
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As of now, EDX facilitates trading in only four cryptocurrencies — Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Notably, BCH has seen a significant surge in value, with a 70.43% rise in the week following the launch of EDX's operations.
Shortly after the crypto exchange's launch was made public, in October, EDX unveiled its partnership with Paxos to manage the "custody and wallet infrastructure of digital assets."
However, it can be assumed that EDX's plans to change its custody partner came in light of stricter custody rules proposed by the United States Securities and Exchange Commission.
When asked about the matter, the spokesperson for Paxos stated:
EDX shifted to focus on a non-custodial offering at launch. We are very excited about what EDX is building, and we hope to support EDX customers with our regulated custody when banks and brokers onboard to the platform.
Paxos, a blockchain infrastructure platform, holds a BitLicense from the New York Department of Financial Services. Earlier this year, the agency reportedly began an investigation into Paxos for an unknown reason.
On the other hand, Anchorage Digital earned the distinction of becoming the first crypto firm to receive OCC's national trust bank charter in January 2021.
EDX has ambitious plans for the near future. It aims to roll out EDX Clearing, a clearinghouse for settling trades executed on the EDX Markets platform, within the year.
The newly launched crypto exchange EDX is reportedly transitioning its custody providers from Paxos Trust to Anchorage Digital. The impact of this move on the crypto exchange's operations and the wider crypto market remains to be seen.
