Citadel-Backed EDX Applies for National Bank Charter

TLDR

• EDX Markets has applied for a national trust bank charter with the Office of the Comptroller of the Currency.
• The charter would allow the company to offer regulated custody, asset management, and principal trading services.
• The exchange plans to separate custody and settlement functions from its trading operations.
• Chief executive Tony Acuña-Rohter said the trust charter would help serve institutional clients.
• The move follows conditional trust charter approvals granted to Circle and Ripple in December.

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EDX Markets has filed for a national trust bank charter with the Office of the Comptroller of the Currency. The application would allow the crypto exchange to expand custody and settlement services under federal oversight. The move marks a direct step toward deeper integration with the US banking system.

Citadel-Backed Platform Seeks Federal Trust Status

EDX Markets submitted its application on April 1, according to public filings. The company seeks approval to operate as a national trust bank under OCC supervision. The charter would permit custody, asset management, and principal trading within a regulated structure.

The exchange stated that the new structure would separate custody and settlement from trading functions. It argued that combining brokerage, exchange, and custody roles creates conflicts and operational risk. Therefore, it aims to align its operations with traditional financial market models.

EDX Markets operates an institutional crypto platform backed by Citadel Securities and other financial firms. The company said the trust charter would strengthen safeguards for client assets. It added that federal supervision would support secure custody and settlement systems.

Chief executive Tony Acuña-Rohter said large banks will shape the next stage of digital asset adoption. He stated, “Obtaining a trust charter positions us to meet institutional demand for regulated custody.” He added that the structure supports clients requiring compliant asset management services.

The company maintained that the trust model reflects established practices in equities and derivatives markets. In those markets, exchanges, brokers, custodians, and market makers operate separately. EDX Markets said this separation limits conflicts between trade execution and asset custody.

Application Reflects Policy Shift Toward Digital Assets

The filing comes as federal regulators show greater openness to crypto firms entering the banking system. Several companies have sought national trust charters in recent months. Regulators have reviewed these applications under existing banking laws.

In December, regulators granted conditional approvals to Circle Internet Group and Ripple. Those approvals allowed both firms to pursue trust bank operations under federal supervision. The decisions placed custody and asset management within the regulatory perimeter.

EDX Markets stated that its proposed structure would reduce systemic risk across crypto platforms. It said separating custody and trading functions strengthens protections for client funds. The firm emphasized that regulated settlement systems improve operational transparency.

Founded in 2022, EDX Markets built its platform for institutional investors entering digital assets. Backers include Citadel Securities, Virtu Financial, Fidelity Digital Assets, and Hudson River Trading. The exchange designed its order-matching system to mirror traditional market infrastructure.

National trust banks can hold client assets and manage portfolios under OCC oversight. They can also provide fiduciary and custody services within federal rules. EDX Markets confirmed that it will continue operating its existing order-matching platform during the review process.

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