EDX Markets, an institutional crypto trade, has utilized to the US Workplace of the Comptroller of the Foreign money (OCC) to set up a nationwide belief financial institution that would supply crypto custody, asset administration and trade-settlement companies.
The proposed entity, EDX Trust, would function as a non-depository nationwide financial institution, separating custody and settlement from buying and selling whereas persevering with to route order matching by means of EDX’s current platform.
In its application, the corporate mentioned the mannequin is meant to handle structural dangers in crypto markets, the place buying and selling, custody and brokerage are sometimes mixed inside a single platform, creating potential conflicts of curiosity and single factors of failure.
EDX mentioned the belief financial institution would supply fiduciary asset administration companies, make investments shopper money and stablecoin balances in extremely liquid property, and facilitate buying and selling by means of a riskless principal mannequin with end-of-day internet settlement.
The financial institution would function on-line from Chicago and goal institutional shoppers similar to broker-dealers, futures fee retailers and registered funding advisers, in accordance to the submitting.
EDX mentioned transferring these capabilities into an OCC-chartered entity would enable it to supply companies nationwide below a single regulatory framework whereas assembly custody necessities for regulated establishments.
Based in 2022, EDX Markets is backed by conventional market contributors together with Citadel Securities, Virtu Monetary, Constancy Digital Property and Hudson River Buying and selling.
Associated: Fed’s Barr backs stablecoin clarity but warns of run risks
Crypto firms search US financial institution charters
The applying comes as crypto and monetary firms more and more pursue nationwide belief financial institution charters to increase institutional companies below federal oversight.
Earlier this month, Zerohash, a blockchain infrastructure firm, utilized for a US national trust bank charter to increase its stablecoin and custody companies for banks, brokerages and fintechs.
Different latest candidates embrace Coinbase, which applied in October and continues to be awaiting a call, in addition to Laser Digital and Payoneer, which filed functions earlier this 12 months to increase custody and stablecoin-related cost companies.
Conventional monetary establishments are additionally getting into the house. In February, Morgan Stanley applied for a de novo trust bank charter to assist digital asset companies by means of a separate entity.
On the identical time, the OCC has continued approving candidates, issuing conditional licenses final month to Bridge, Stripe and Crypto.com, following approvals in December for Ripple Labs, Circle Web Group, Constancy Digital Property, Paxos and BitGo.
Nevertheless, the tempo of approvals has drawn scrutiny. In February, the American Bankers Affiliation urged the OCC to slow the process, citing unresolved oversight below pending US stablecoin laws.
Cointelegraph by Nate Kostar EDX Markets Applies for OCC Trust Bank to Expand Crypto Services cointelegraph.com 2026-04-01 20:44:04
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