BitGo Granted New York Trust Charter by NYDFS to Operate As An Independent Custodian
Crypto custodian BitGo has been granted a New York Trust license by the New York Department of Financial Services (NYDFS). The firm is now set to offer more crypto-based assets on Wall Street.
According to the announcement, the new license grants BitGo a chance to offer trading and crypto storage services to hedge funds, institutional investors, private equity firms as well as banks.
In the past, BitGo was granted a trust charter license in South Dakota, which meant that it could provide its services to different institutional investors from other states apart from New York, which is a major financial epicenter. In line with the new trust charter, Wall Street investors can now confidently utilize BitGo in investing and storing cryptocurrencies.
BitGo’s chief revenue officer, Pete Najarian, explained that the firm will now focus on offering the conventional financial institutions and other investors a simple way to enter into the crypto space. He explained,
“We’re finding that the largest traditional financial institutions are all doing a considerable amount of work to determine what their level of participation will be in the digital asset space. For BitGo that can mean collaborative relationships in which we act as a sub-custodian or we work in partnership or we develop white label solutions.”
Najarian explained that the firm had received high outreach from clients that have been eagerly waiting for them to be licensed. He, however, did not disclose the identity of these customers, only saying that they were not only willing but also wealthy.
BitGo is not the only firm to be issued with the elusive license as this is the eighth charter to be issued in New York. Paxos was the first firm to be issued with a trust charter in 2015, followed by the Winklevoss twins-owned Exchange, Gemini five months later. Others include Fidelity, Coinbase, Bakkt, NYDIG via Stoneridge as well as GMO-Z.com.
BitGo started the journey to licensure in August last year after applying for a New York trust charter with the aim of operating as an independent yet regulated custodian.