Citadel and Fidelity Push to Bring Crypto Custody and Settlement Inside U.S. Banks
EDX Markets’ pursuit of a federal trust bank charter marks one of the clearest attempts by Wall Street heavyweights to fold crypto custody and settlement into the regulated banking perimeter. Supported by Citadel and Fidelity, the move would shift key infrastructure—trade settlement, custody and clearing—onto a platform subject to federal trust laws and banking supervision, rather than leaving those services with offshore or unregulated providers. If approved, the charter could materially lower counterparty and settlement risks for institutional players, speed onboarding for large investors, and reinforce the U.S. as the centre for regulated crypto markets. It also serves as a practical test of whether traditional finance can offer competitive, compliant alternatives to crypto-native custodians, while inviting closer regulatory scrutiny and oversight over digital-asset operations.