EDX Markets, the institutional crypto exchange backed by Citadel Securities, has officially filed for a national trust bank charter with the Office of the Comptroller of the Currency (OCC).
EDX Markets applied on 25 March, and the OCC received the application on 26 March. The filing became public on Wednesday with Bloomberg reporting it first.
If approved, the charter would let EDX offer regulated custody, asset management, and principal trading alongside its current order-matching business. It would also let the company operate under one federal framework across all 50 states instead of following separate state licensing rules.
What a trust charter allows
A national trust bank charter is a special type of federal license. However, it does not let a company take consumer deposits or give out loans like a traditional bank.
Instead, the license allows institutions to safely hold client assets, manage investment portfolios, and provide fiduciary services under the supervision of the Office of the Comptroller of the Currency.
For EDX, an approval would give the company the ability to provide digital asset custody for institutional clients while keeping that part of the business separate from its trading platform.
The exchange said this separation is similar to the structure used in traditional equity and derivatives markets. In those markets, custody, trading, and clearing are usually handled by separate entities. As a result, this setup helps reduce conflicts of interest and lowers operational risk.
“Vertically integrated entities housing brokerage, exchange, and custodian functions create potential conflicts of interest and a single point of failure that can cause systemic risk,” the filing says. “Moving the custody, asset management, and trade settlement services into an OCC-chartered national trust bank would provide its customers with the most secure regulatory structure possible.”
Security and transparency for institutional investors
By placing custody and settlement within a regulated trust, EDX aims to provide better safeguards and increased transparency.
It could help attract pension funds, asset managers, and other large investors, who usually want strong protections before they commit large sums to crypto markets.
“Notwithstanding the foregoing, EDX Trust will maintain an information security program designed to protect the confidentiality, integrity, and availability of the Bank’s systems and information,” the company added.
Regulatory momentum builds for crypto trust charters
The move comes as more crypto firms are trying to get federal trust bank status under a more supportive U.S. policy environment. Bloomberg reported in early March that Zero Hash had also applied for a national trust bank charter.
Earlier, in December, the OCC said it had conditionally approved five national trust bank applications, including those from BitGo, Fidelity Digital Assets, Circle, Ripple and Paxos.
The OCC also finalized a rule that took effect on Wednesday. The rule clarified that national trust banks can carry out certain non-fiduciary activities.
These approvals showed that federal regulators are willing to consider crypto companies under existing banking rules, as long as they meet strict operational and compliance standards.
EDX Chief Executive Officer Tony Acuña Rohter told Bloomberg that large banks are likely to drive the next wave of crypto adoption. He said an OCC charter would give the company an edge in serving those institutions.
“It is without a doubt that the next wave of crypto will be the large banks. And in order for us to be able to service these firms, we think it gives us a competitive advantage to be an OCC-chartered trust,” he added.
The OCC usually takes several months to review such applications, and it may still reject EDX’s request. Before making a decision, regulators may ask the company for more details about its risk management, cybersecurity, and asset protection measures.
Until then, EDX will continue running its current trading platform and working with federal officials on the charter application.
EDX Grows Institutional Crypto Business
EDX Markets launched in 2022 with support from major Wall Street firms, including Citadel Securities, Fidelity Digital Assets, Charles Schwab, Virtu Financial, and Hudson River Trading. These firms helped back the exchange from the beginning.
At first, the platform focused on non-custodial trading for institutions. This means the exchange matched buy and sell orders but did not hold client assets.
Since then, the company has expanded its token listings from four to more than 20 cryptocurrencies. This expansion came as institutional interest in digital assets continued to grow.