- California-based financial services firm BitGo received approval to operate in New York City.
- BitGo will now be able to meet the crypto investment needs of the state’s financial giants.
- In New York, BitGo will offer offline cold storage of keys, an insurance cover of up to $100 million and multi-signature cryptographic technology.
On March 4th, BitGo announced it had been granted a trust charter by the New York State Department of Financial Services (NSDFS), meaning it is now allowed to operate in the State of New York.
The new license will empower BitGo to provide custodial services to institutional investors and is yet more evidence that New York will remain the financial capital of the world.
As regulators increasingly turn their attention to the crypto space, players in that space are keen to meet all necessary requirements needed to continue operating. In January, crypto custodian Anchorage received approval as a “national trust” from the Office of the Comptroller of the Currency (OCC), meaning it is the first digital bank in the United States.
BitGo to Bring Its Crypto Custodial Services to the Big Players
BitGo announced that it has received a trusted charter from the New York Department of Financial Services (NSDFS) to operate as an independent custodian of digital assets in accordance with the rules provided by the New York State banking law, meaning Wall Street’s financial titans are now fair game for BitGo to solicit as clients.
This trust charter will allow BitGo to provide custodial services to firms and investors In New York who are looking to safely and efficiently store huge volumes of digital assets.
Commenting on the development, BitGo CEO Mike Belshe said:
We are extremely proud to receive the approval for a trusted charter from NYDFS to serve the world’s premier financial organizations that are based in New York State. The past year has been exceptional for BitGo and digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity and stability to the crypto ecosystem.
BitGo had originally applied for its charter in 2020. With institutional investors showing serious cryptocurrency interest in recent times, custodial services for digital assets is becoming an imperative for the ecosystem.
On the Flipside
- TON investor demands $100 million from Telegram after failed cryptocurrency project.
- Similarly, aggrieved MoneyGram investors filed a class-action lawsuit against the remittance firm this month for its use of Ripple’s XRP.
- In 2019, MoneyGram announced a partnership with Ripple to use XRP in its cross-border payments process.
Pete Najarian, BitGo’s chief revenue officer, explained that the new charter is an important milestone required to serve their clients while operating with the state’s regulatory framework.
The BitGo New York Trust provides offline (cold) storage of keys, insurance cover to the tune of $100 million and multi-signature cryptographic technology.
In addition to these features, BitGo offers clients the option to purchase excess species coverage, fast onboarding and 24/7 support.
Brief BitGo Bio
BitGo is a digital asset financial firm founded in 2013 by Mike Belshe and Ben Davenport. It was created to provide institutional investors with liquidity, custody and security, and insurance for digital assets was an innovation the company prided itself on. that are insured.
On the platform, it offers hot (fully online), warm and cold (fully offline) wallet solutions and additional services include trading, lending, borrowing and settlement of digital assets. As of December 2020, the firm’s digital assets under custody soared to $16 billion.