When EDX Markets filed to create a national trust bank, it wasn’t just asking for a new charter. It was laying the groundwork to become the dominant regulated settlement venue for institutional digital asset trading. On Tuesday, it secured $76 million more to accelerate that vision, closing a Series C round led by SBI Holdings, according to the funding update.
The fresh capital will expand EDX’s trading, clearing, and settlement infrastructure and scale global operations. It also comes just months after the exchange launched EDX FlowConnect, its crypto-as-a-service platform, and applied to the U.S. Office of the Comptroller of the Currency to establish EDX Trust, a national trust bank for regulated digital asset custody, clearing, and settlement. SBI’s leadership of the round signals that serious institutional money is betting the platform can bridge the gap between traditional finance and crypto markets without the counterparty risks that have plagued earlier exchange models.
EDX Markets isn’t a startup trying to figure out what works. It launched in 2023 with backing from Citadel Securities, Fidelity Digital Assets, Charles Schwab, and Virtu Financial. Its core market-structure innovation was separating trade execution from custody. The exchange matches orders but never holds customer assets, a design intended to eliminate the commingling of funds that doomed FTX and others. The non-custodial model attracted firms that wanted crypto exposure without leaving assets on an exchange balance sheet. That proposition still holds, but the OCC trust application shows EDX now wants to go deeper: a regulated entity that can custody assets, clear trades, and settle them under one roof, effectively becoming a prime broker for digital assets.
Why the trust bank matters more than the money
The $76 million raise draws headlines, but the bigger story is the trust bank charter. If approved, EDX Trust would operate under federal supervision, hold digital assets in custody, clear transactions, and settle them, functions that today are split across multiple entities. A national trust charter would also give EDX a federal preemption over state money transmitter licenses, simplifying a regulatory patchwork that has slowed institutional adoption. The filing comes as a sweeping crypto market structure bill faces fierce bank lobbying just days before a Senate vote, underscoring how high the stakes are for anyone trying to own regulated crypto rails.
SBI Holdings is not a passive investor. The Japanese financial conglomerate has been building a crypto ecosystem for years, from exchange operations to tokenization platforms. Its investment likely means more than capital: it could open a corridor between Asian institutional liquidity and a U.S.-regulated settlement venue. That cross-border flow matters because much of the world’s institutional crypto activity still relies on offshore structures. EDX Trust would be a domestic onshore option, something U.S. pension funds, endowments, and asset managers have been waiting for.
Infrastructure, not just an exchange
EDX FlowConnect already points to where the company is headed. The crypto-as-a-service product offers API-based access to trading and liquidity services for fintechs and institutions, a model reminiscent of how prime brokers and execution management systems work in equities. Pair that with trust bank capabilities, and EDX starts to look less like a venue and more like the institutional plumbing for an entire asset class. The Series C funds will accelerate product development along that same vector, likely adding more structured product support and improved settlement cycles.
The capital injection lands at a moment when institutional appetite for tokenized assets is heating up. On-chain real-world assets crossed $20 billion in value this year, and firms are racing to build the infrastructure to trade, clear, and custody them alongside native crypto. EDX’s build-out could position it as a neutral venue for both, a narrative that fits neatly with its existing architecture. A recent wave of tokenization deals shows how quickly the settlement layer is becoming the prize, not the exchange ledger.
Still, the trust bank application is far from a done deal. The OCC has taken a cautious approach to crypto charters in the past, and the political environment remains divided. Even if granted, it will take months before EDX Trust can onboard clients and settle trades in a Federally regulated fashion. Competitors like Anchorage Digital already hold national trust charters, and BitGo has a South Dakota trust, meaning EDX would be entering an established field, not a green one.
What shifts for institutional crypto infrastructure
For U.S.-based institutional traders, this moves the needle. Currently, most large players rely on a mix of prime brokers, OTC desks, and exchange venues with varying degrees of custody integration. A single entity that can execute, clear, and custody under a federal trust charter could compress costs and reduce operational risk. That is the pitch EDX is making. The Series C ensures the company has the runway to deliver it before the talent and regulatory window narrows.
The round also highlights a broader trend: infrastructure funding has held up even as speculative crypto deal volume cooled. SBI’s bet on EDX mirrors moves by other large financial groups that are quietly assembling the pieces for a more compliant market structure, as evidenced by a recent uptick in institutional staking and partnership activity across the space. The market is separating the picks-and-shovels players from those reliant on trading volume alone. EDX is betting it belongs in the former camp, and SBI just agreed.
