EDX Markets, a cryptocurrency exchange backed by Citadel Securities, has officially submitted an application for a national trust bank charter, aiming to expand its offerings for institutional clients. This filing was made to the Office of the Comptroller of the Currency on Wednesday, marking a significant step since the exchange’s launch approximately three and a half years ago.
If granted, the charter would enable EDX to provide custody, asset management, and principal trading services while maintaining its core order-matching platform. The proposed structure would ensure that custody and settlement operations are housed within a regulated trust entity, separate from trading activities.
EDX Markets is focused on attracting traditional finance firms that are entering the digital asset space. Its notable backers include Fidelity Digital Assets and Charles Schwab Corp, in addition to Citadel Securities. The platform went live in the summer of 2023, initially offering four cryptocurrencies: Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Since then, it has expanded its offerings to include 17 additional tokens.
“EDX Trust is a key step in bringing traditional market structure to digital assets,” stated CEO Tony Acuña-Rohter. “By separating custody and settlement into a regulated trust, we’re building the kind of infrastructure banks and institutional investors expect as they scale into the space.”
EDX is not the only crypto firm pursuing regulatory approval for trust bank charters. Several companies in the sector have successfully obtained such charters in recent years, allowing them to provide custody and other services under U.S. regulatory oversight. These approvals have become essential for firms looking to attract institutional investment.
As competition for institutional clients intensifies, large asset managers and trading firms are increasingly seeking platforms that emulate the safety and structure of traditional markets. This includes features like segregated custody, clear settlement processes, and regulated entities that mitigate counterparty risk. For exchanges like EDX, acquiring a trust charter could be pivotal in addressing these demands.
EDX Markets has filed for a national trust bank charter to enhance its services for institutional clients, aiming to provide custody and asset management. This move reflects a growing trend among crypto firms to secure regulatory approvals to attract traditional finance clients.