Alexander Osipovich and the WSJ report that EDX Markets (an exchange only for institutions) is now live. The exchange provides trading for a small number of the most established virtual currencies, and does so on a non-custodial basis. Alexander describes EDX as “a ‘noncustodial’ exchange, meaning it doesn’t directly handle its customers’ digital assets.” We have discussed custody considerations for financial institutions, the complications of the custody regulatory environment, and asset-specific solutions that must include non-custody options. This ongoing shift is inevitable. The announcement comes on the heels of the FTX implosion, and re-establishes the value of traditional finance infrastructure for digital assets.
Link to WSJ article. Additional reporting by Yueqi Yang and Katherine Doherty at Bloomberg here.