EDX Markets Drops Paxos as Planned Custodial Partner

Coinscreed
Coinscreed

28 Jun 2023 9:58 PM

EDX Markets has reportedly ended its planned partnership with Paxos and is close to finalizing an agreement with Anchorage Digital....

  • EDX Markets has ended its planned partnership with Paxos and is close to finalizing an agreement with Anchorage Digital.
  • Anchorage Digital, a cryptocurrency custodian based in San Francisco, is the leading candidate to replace Paxos.
  • Anchorage Digital has a bank charter from the Office of the Comptroller and has committed to addressing deficiencies in its anti-money laundering systems.
  • Despite a successful investment round in 2021, Anchorage Digital implemented a 20% reduction in its workforce in March.
  • EDX's CEO, Jamil Nazarali, announced the hiring of a third-party custodian without disclosing the partner's identity.
  • EDX's website confirms Anchorage's status as a recognized partner, while Paxos needs to be present.
  • Paxos faced regulatory hurdles, including an order to cease issuing BUSD and an investigation by the US Securities and Exchange Commission.

The article provides information about EDX Markets ending its partnership with Paxos and potentially partnering with Anchorage Digital. It also highlights the regulatory hurdles faced by Paxos. The sentiment is neutral, as it presents both positive aspects (Anchorage Digital's bank charter, commitment to addressing deficiencies) and negative aspects (workforce reduction, regulatory issues).

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You May Ask

Why did EDX Markets end its partnership with Paxos?Who is the leading candidate to replace Paxos as EDX's custodial partner?What regulatory hurdles has Paxos faced?Why is choosing the right custodian crucial for EDX?What is the non-custodial philosophy of EDX Markets?

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