National Trust Bank Bid: Citadel Securities-Backed | Crypto News
EDX Markets, the crypto exchange backed by Wall Street giant Citadel Securities, has utilized to the Office of the Comptroller of the Currency (OCC) for a national trust bank constitution, according to a public submitting disclosed Wednesday.
The transfer comes as US regulators under the current Trump administration have adopted a more receptive posture toward crypto companies looking for to operate under federal banking charters.
EDX Seeks OCC Trust Charter To Court Big Banks
EDX’s chief govt, Tony Acuña‑Rohter, who is slated to be part of the proposed trust’s board, told Bloomberg that the exchange expects large banks to drive the next part of crypto adoption. He said securing an OCC trust constitution would give EDX a aggressive edge in servicing those establishments.
By working under a national trust constitution, crypto companies can operate across state strains under a single federal regulator, fairly than acquiring a number of state money‑transmitter licenses, simplifying custody, settlement, and fiduciary companies for digital property.
EDX’s submitting argued that the prevailing construction of many digital‑asset platforms concentrates a number of capabilities — brokerage, exchange, market‑making, and custody — within single vertically built-in companies, creating potential conflicts of curiosity and single factors of failure.
The company said transferring custody, asset management, and commerce settlement into an OCC‑chartered national trust bank would offer prospects with the “most secure regulatory structure possible,” and would align digital‑asset market infrastructure more intently with the separation of duties customary in conventional equities and derivatives markets.
The utility locations EDX among a number of crypto firms pursuing comparable paths. In December of last 12 months, 5 companies — including Circle (CRCL) and Ripple — obtained conditional approval for trust charters. However, not everybody in the financial sector helps that method.
Growing Bank Unease Over Crypto Trust Charters
Some incumbent banks and industry teams have pushed back, involved that increasing trust‑bank charters to crypto firms stretches the historic objective of the constitution and might introduce new dangers.
Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, warned that conditional approvals might endanger shoppers and create establishments that the OCC would possibly wrestle to regulate successfully.
She also argued that the new framework can allow stablecoin operators to access the federal banking system without assembly the same capital and regulatory requirements required of full‑service, deposit‑taking banks.
Yet, the OCC’s management has defended the approvals. Comptroller of the Currency Jonathan Gould said new entrants to the federal banking system can convey contemporary merchandise and companies and enhance competitors, which he maintained would benefit shoppers and the broader banking sector.
Featured image from OpenArt, chart from TradingView.com
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