Citadel-Backed EDX Markets Seeks National Trust Charter to Lock in Institutional Crypto Boom

Citadel-backed EDX Markets applies for U.S. trust charter to expand institutional crypto servicesMarkets

What to know:

EDX Markets, a crypto exchange backed by Citadel Securities, Fidelity and Charles Schwab, has applied to the Office of the Comptroller of the Currency for a national trust bank charter to expand services for institutional clients.
If approved, the charter would let EDX offer custody, asset management and principal trading through a regulated trust entity that is structurally separated from its core trading platform.
The move comes as competition intensifies among crypto firms seeking trust bank charters to provide regulated custody and settlement services that mirror traditional market safeguards and attract large financial institutions.

EDX Markets, a cryptocurrency exchange supported by Citadel Securities, has requested a national bank charter. This move is part of its plan to expand services for institutions and larger investors.

CoinDesk has reported that the exchange officially filed paperwork with the Office of the Comptroller of the Currency on Wednesday. This filing occurred roughly three and a half years after the exchange first began operating.

If granted approval, EDX would be able to provide services like securely holding assets, managing investments, and executing trades on its own behalf, in addition to its existing platform for matching buyers and sellers. The application details a plan where asset custody and settlement are handled by a separate, regulated trust, keeping those functions distinct from the trading side of the business.

EDX Markets helps established financial companies start trading digital assets like cryptocurrencies. It’s supported by major players in finance, including Fidelity Digital Assets, Charles Schwab, and Citadel Securities. Launched in the summer of 2023 with four cryptocurrencies – Bitcoin, Ether, and Bitcoin Cash – the platform now offers a total of 21 different tokens.

According to CEO Tony Acuña-Rohter, EDX Trust is an important move towards establishing standard financial practices within the digital asset world. By using a regulated trust to keep assets safe and finalize transactions separately, EDX is creating the infrastructure that banks and larger investors need to confidently expand their involvement in digital assets.

EDX isn’t the only crypto company trying to operate within traditional financial regulations. Several others have already obtained trust bank charters, allowing them to offer services like secure digital asset storage under U.S. government supervision. Getting these approvals is now a major way for crypto firms to attract investment from larger, institutional investors.

Competition for customers is increasing, and big financial companies are looking for platforms that offer the same security and organization as traditional markets. This often means keeping assets separate, having clear procedures for completing transactions, and working with regulated companies to minimize risk. Getting a formal trust license could help platforms like EDX meet these demands and build trust with clients.

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