EDX Markets national trust bank charter application
EDX Markets national trust bank charter has been applied for by EDX Markets, with the filing submitted to the Office of the Comptroller of the Currency on Wednesday. If approved, the charter would allow custody, asset management and principal trading services, with custody and settlement sitting within a regulated trust entity separate from trading operations. The EDX platform launched in summer 2023 supporting Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BHC), and has since expanded to include 17 additional tokens.
EDX Markets has submitted a filing to the Office of the Comptroller of the Currency (OCC) seeking approval for a national trust bank charter. If granted, this charter would enable EDX Markets to provide services including custody, asset management, and principal trading. Importantly, the custody and settlement functions would be organized within a regulated trust entity, which would be distinct and separate from the trading operations. This structure is designed to enhance regulatory oversight and foster confidence among institutional investors by aligning with traditional financial practices. By compartmentalizing custody services from trading, EDX Markets aims to create a robust infrastructure that meets expected standards for security and regulatory compliance in the digital asset space, inspiring greater trust and participation from institutional players.
EDX Markets has garnered support from major financial entities like Fidelity Digital Assets, Charles Schwab Corp, and Citadel Securities. These firms back EDX in its aim to become a prominent player in digital asset services.
The platform was launched in the summer of 2023, initially supporting four major cryptocurrencies: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BHC). Following its successful debut, EDX Markets expanded its offerings to include 17 additional cryptocurrencies, significantly broadening its digital asset portfolio and appealing to a wider range of investors and traders.
Several crypto firms have applied for and received U.S. trust bank charters in recent years, using those charters to offer custody and other services under U.S. oversight. Those trust bank charters have been used to register custody and related services with U.S. regulatory authorities and to operate those services within a U.S. oversight framework. Such filings and approvals have been part of recent industry activity around regulated custody offerings and other services under U.S. oversight.
In related developments, JPMorgan is weighing a move into prediction markets. Rivals cited in connection with competitive dynamics include Goldman Sachs.
EDX Markets’ application for a national trust bank charter, if approved, would permit custody, asset management and principal trading services while placing custody and settlement within a regulated trust entity separate from trading operations. The structure places custody and settlement under U.S. oversight as segregated, regulated functions, and this arrangement relates to the evolution of digital asset market infrastructure for institutional participants.
