Today, EDX Markets (EDXM) announced that it has selected Paxos for the institutional custody of assets traded by the digital asset exchange. EDXM was introduced just three weeks ago with a consortium of backers including Citadel Securities, Fidelity Digital Assets, Schwab, Paradigm, Sequoia Capital and Virtu Financial.

With EDXM, access to cryptocurrencies will be through traditional brokers rather than a cryptocurrency exchange.

In addition to providing custody services, Paxos will also implement its settlement solution that enables clearing.

“With compliance and security being key differentiators of EDXM’s offering, we are delighted to partner with Paxos to offer the gold standard in digital asset custody services to our investors,” said Jamil Nazarali, CEO of EDXM.

“With best-in-class solutions from Paxos coupled with MEMX’s technology powering the exchange, EDXM now has all the tools to make institutional-grade digital asset trading available to investors for the first time.”

Paxos is a New York licensed custodian so client assets are fully segregated. It also has a conditional bank trust letter from the Comptroller of the Currency. The startup has raised more than $540 million in funding to date.

While many crypto companies claim they want to target institutions, Paxos is one of the few that has shown this. In addition to its much-publicized deal with PayPal, where it offers cryptocurrency brokerage, it also operates stablecoins on behalf of Binance and others.

In addition, it has Paxos Settlement Service, an institutional solution that uses tokenized money to settle equity and commodity transactions on the same day. Pilot users on the equity side include Credit Suisse, State Street, ABN Amro, Bank of America, Nomura’s Instinet, Societe Generale and Wedbush. Paxos had a no-action letter from the SEC that expired, but applied for a license as a stock clearing agency. Koch Metals has been involved on the commodity side.