Fidelity Wins a License to Operate a Virtual Currency Custody Platform in New York
Fidelity Digital Asset Services, LLC (FDAS) has been granted a charter from the New York State Department of Financial Services (NYDFS) to operate a virtual currency custody platform, according to a press release on Nov. 19.
Per that, the NYDFS authorized FDAS to operate as a limited liability trust company and run a cryptocurrency custody and execution platform where both institutional investors and individuals can store, buy, sell, and transfer Bitcoin.
The new license under New York Banking Law.
“This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry”, stated Linda A. Lacewell, Superintendent of Financial Services.
Speaking on the development, Michael O’Reilly, COO for Fidelity Digital Assets, said:
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions and other market participants. We will continue to play a leading role in supporting the maturation of the entire ecosystem as we expand our business and the clients we serve.”
Fidelity’s progress in crypto custody
Last month, the financial services company Fidelity Investments announced Fidelity Digital Asset Services (FDAS), a subsidiary limited liability corporation focused on bringing cryptocurrency trading to institutional investors, including hedge funds, pensions, and endowments.
Earlier this month, Fidelity hired product specialist Michael Zinaman to oversee the firm’s strategy regarding cryptocurrencies, custody, and execution services.
Recently, institutional Bitcoin trading platform Bakkt had received the go-ahead from the New York Department of Financial Services (NYDFS) to offer custody services to any institution. Previously, the option was only available for those trading its Bitcoin futures.
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