EDX Market It is the latest cryptocurrency exchange to aim to become a national trust bank.
in to request with Office of the Comptroller of the Currency (OCC) announced on Wednesday (April 1), the company seeks to become a new national bank as its operations are limited to those of a trust company.
The aim is to provide custody and asset management services while facilitating “risk-free key trading services” for EDX clients, the application said. Meanwhile, trading will continue on EDX Markets.
The deposit was marked in A a report by Bloomberg News, which also included an interview with the CEO of EDX Tony Mint-Ruhter.
“Without a doubt, the next wave of cryptocurrencies will be the big banks,” he said. “And to be able to serve these companies, we believe it gives us a competitive advantage to be an OCC-chartered credit institution.”
The company says it aims to fill a gap in the US digital assets market, noting that in traditional markets such as equities and derivatives, there is a “segregation of duties” between roles such as brokers who work with retail clients or market makers who provide liquidity.
We would love to be yours Favorite source of news.
Please add us to your favorite sources list so our news, statements and interviews appear in your feed. Thanks!
Advertisement: Scroll to continue
“Digital asset markets are still evolving, but so far they lack this separation of functions,” the app says.
“Vertically integrated entities are being created for brokerage, exchange and custody functions
Potential conflicts of interest and single point of failure that can cause systemic risk. Transferring custody, asset management and trade settlement services to an OCC-chartered national trust bank would provide its clients with the safest regulatory structure possible.
With this application, EDX joins a group of other companies Ask for OCC’s blessing To become a national trust bank.
As PYMNTS wrote last month, the OCC has gotten so many requests for national trust charters focused on digital assets that the lobby group for the traditional financial sector, Banking Policy Institutehe was thinking Sue the regulator Due to its decisions to approve several cryptocurrency, payment and fintech companies.
At the time of this writing — 11 days into March — the OCC has approved four new applications and received north of seven.
“Although conditional approvals and actual operational status are two completely different things,… Direction of travel “Cross-banking means that regulated infrastructure providers, not consumer interfaces, can be the most valuable layer of financing,” the report said.
