EDX Markets, a cryptocurrency exchange backed by Citadel Securities, has applied for a national trust bank charter with the Office of the Comptroller of the Currency, marking a step toward deeper integration between digital asset firms and the US banking system.
The application, made public on April 1 according to recent filings, would allow EDX Markets to offer custody, asset management and principal trading services while continuing to operate its existing order-matching platform. The firm said the charter would place key functions such as custody and settlement under a regulated banking structure.
EDX Markets framed the move as part of an effort to reshape crypto market structure along lines seen in traditional finance.
In its filing, the company argued that combining brokerage, exchange and custody functions within a single entity creates conflicts of interest and introduces operational risk.
A trust bank model, it said, would separate custody and settlement from trading activity, aligning digital asset infrastructure with established financial market practices.
Banks are coming to crypto
Chief executive Tony Acuña-Rohter said the firm expects large banks to play a central role in the next phase of digital asset adoption. He said obtaining a trust charter would position EDX Markets to serve institutional clients that require regulated custody and settlement systems.
The application arrives during a shift in federal policy toward digital assets. Under the current administration, regulators have shown greater openness to crypto firms seeking entry into the banking system. Several companies have pursued similar charters in recent months as part of a broader push to operate under federal supervision.
In December, regulators granted conditional approval for trust bank charters to firms including Circle Internet Group and Ripple. Those approvals signaled a willingness to bring digital asset firms into the regulatory perimeter that governs custody and asset management.
EDX Markets said its proposed structure would reduce systemic risk by separating functions that are often combined on crypto platforms.
The company pointed to traditional equities and derivatives markets, where exchanges, brokers, custodians and market makers operate as distinct entities. That separation, it said, limits conflicts between trade execution and asset custody while strengthening safeguards for client funds.
Founded in 2022, EDX Markets was built to serve institutional investors and financial firms entering the digital asset sector. In addition to Citadel Securities, its backers include Virtu Financial, Fidelity Digital Assets and Hudson River Trading.
The platform was designed to mirror the structure of traditional financial markets, with a focus on separating trading activity from custody and settlement.
If approved, the trust charter would allow EDX Markets to expand its custody and settlement capabilities under federal oversight. National trust banks are permitted to hold client assets, provide fiduciary services and manage portfolios, subject to supervision by the OCC.
Source: https://bitcoinmagazine.com/news/edx-markets-us-trust-bank-charter