- The company does not want problems with the SEC
- Paxos comes under pressure from regulators over BUSD
Recall, on June 20, we reported that Citadel Securities, Fidelity and Charles Schwab launched the EDX cryptocurrency exchange. It was assumed that the platform would use Paxos as a custodian, but the company said otherwise.
The exchange does not store cryptocurrencies on its own accounts in order to avoid possible conflicts of interest and problems with the SEC. Apparently, this decision was made in view of the new requirements for custodial service providers in the United States and the allegations against FTX.
EDX announced a possible partnership with Paxos last fall, when the first information about the preparation of the platform for launch appeared. But now the organization has changed its mind.
The portal reports Bloomberg citing your source. According to the agency, EDX is in talks with Anchorage Digital. It is the first cryptocurrency firm to receive a national trust bank charter from the OCC in 2021.
This is also confirmed by the information on the official website of the exchange:
The company declined to comment on the situation. Apparently, the break in the preliminary agreement with Paxos is primarily due to pressure on the organization from the authorities. Earlier this year, the company became the object of an investigation by the New York Department of Financial Services. It is also still in talks with the SEC regarding the BUSD stablecoin.