{"id":53391,"date":"2023-06-28T17:58:39","date_gmt":"2023-06-28T21:58:39","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=53391"},"modified":"2023-06-28T18:02:11","modified_gmt":"2023-06-28T22:02:11","slug":"edx-markets-drops-paxos-as-planned-custodial-partner","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/edx-markets-drops-paxos-as-planned-custodial-partner\/","title":{"rendered":"EDX Markets Drops Paxos as Planned Custodial Partner"},"content":{"rendered":"\n

EDX Markets has reportedly ended its planned partnership with Paxos and is close to finalizing an agreement with Anchorage Digital<\/a>. <\/p>\n\n\n\n

\"EDX
EDX Markets Drops Paxos as Planned Custodial Partner<\/figcaption><\/figure>\n\n\n\n

The initial partnership between EDX and Paxos, announced last year, would have allowed Paxos to serve as the custodian for EDX's clients' digital assets while providing direct access to Paxos consumers. <\/p>\n\n\n\n

However, EDX has decided to pursue an alternative custodial option instead. Anchorage Digital, a cryptocurrency custodian based in San Francisco, is currently the leading candidate to replace Paxos. <\/p>\n\n\n\n

Anchorage Digital is highly respected in the market and has a bank charter from the Office of the Comptroller \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>(OCC). The company has committed to addressing the deficiencies in its anti-money laundering systems, which drew criticism from the OCC in 2021. <\/p>\n\n\n\n

Despite a successful investment round in 2021 that valued the company at over $3 billion, Anchorage Digital implemented a 20% reduction in its workforce in March.<\/p>\n\n\n\n

EDX's CEO, Jamil Nazarali, recently announced that the company had hired a third-party custodian but did not disclose the new partner's identity. A visit to EDX's website confirms Anchorage's status as a recognized partner, while Paxos needs to be present. <\/p>\n\n\n\n

Paxos facing regulatory hurdles amidst partnership shift<\/h2>\n\n\n\n

According to a spokesperson from Paxos, EDX shifted its focus to a non-custodial offering upon launch but expressed enthusiasm about supporting EDX's customers with regulated custody services when banks and brokers join the platform.<\/p>\n\n\n\n

Choosing the right custodian is crucial for EDX due to its non-custodial philosophy. Unlike cryptocurrency exchanges like Coinbase and Binance Holdings Ltd., EDX does not hold clients' digital assets <\/a>during transactions. <\/p>\n\n\n\n

This approach necessitates a reliable custodial partner to ensure the security and integrity of clients' funds. Meanwhile, Paxos has faced regulatory hurdles over the past year. <\/p>\n\n\n\n

The state of New York ordered Paxos to cease issuing BUSD, the Binance-backed stablecoin, in February. The US Securities and Exchange Commission<\/a> (SEC) has also sent Paxos a Wells notice, indicating that it is investigating the company and may take legal action. Paxos has stated its willingness to defend itself in court against these allegations.<\/p>\n","protected":false},"excerpt":{"rendered":"

EDX Markets has reportedly ended its planned partnership with Paxos and is close to finalizing an agreement with Anchorage Digital. The initial partnership between EDX and Paxos, announced last year, would have allowed Paxos to serve as the custodian for EDX’s clients’ digital assets while providing direct access to Paxos consumers. However, EDX has decided […]<\/p>\n","protected":false},"author":43,"featured_media":53393,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[11482,292],"class_list":["post-53391","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-edx-markets","tag-paxos"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2023\/06\/croc_1687987771758.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/53391","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/43"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=53391"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/53391\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/53393"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=53391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=53391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=53391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}