Big Banks Bet on Crypto’s Future Through New Federal Rules

A group of Wall Street giants is quietly reshaping how cryptocurrencies could work in the future. Firms like Citadel, Fidelity, and Schwab have backed EDX Markets, which is now asking for a special federal banking license. Their goal? To build a system where crypto trades and holdings follow the same strict rules as traditional stocks and bonds. Right now, most crypto exchanges do everything in one place—matching trades, holding coins, and managing funds. But EDX wants to split these jobs. A new trust bank would handle custody and settlements, while the exchange itself would just focus on matching orders. This could make crypto safer for big investors who need clear rules and strong protections.

The push comes as regulators start approving more crypto-friendly banks. The Office of the Comptroller of the Currency (OCC) has already given tentative approval to a few firms, including one tied to Fidelity. If EDX succeeds, it could set a new standard: crypto infrastructure that looks more like traditional finance. But will big institutions actually use it? That’s the big question. Right now, most crypto trading happens on exchanges that bundle everything together. Moving to a split system would require trust in a new kind of bank—and a willingness to change how things have always worked.

Actions