Citadel

EDX Markets’ bid for a federal trust bank charter, backed by Citadel and Fidelity, aims to move crypto custody and settlement into the U.S. regulated banking system. The effort is a high-stakes test of whether Wall Street can internalize core crypto infrastructure under federal oversight.

EDX Markets, backed by Citadel, has applied for a U.S. trust charter to offer custody and asset services to institutional clients amid rising demand. Approval would make the exchange a regulated custodian and could help attract larger institutional flows.

DeFi groups slammed Citadel Securities for urging tougher SEC regulation, calling the firm's position “flawed.” Industry participants warned that broadening SEC authority risks undermining innovation and decentralization in decentralized finance.

Citadel Securities has lodged a forceful objection with the SEC to a proposal seeking exemptive relief for tokenized U.S. equities and broader DeFi applications, arguing the risks outweigh the benefits. The letter targets market structure, investor protection, and what Citadel calls regulatory arbitrage.