The cryptocurrency company Fidelity Digital Assets has just been granted a license by the New York financial regulator.
The information was released by the Department of Financial Services in a press release on November 19, 2019.
Fidelity Digital Assets Granted NY License
Fidelity Digital Assets has been granted by the New York State Department of Financial Services (DFS) a charter under the New York Banking Law to operate as a LLC.
New York is known to be a very difficult jurisdiction for companies to operate in and receive the so-called BitLicense, which has been granted to just a limited number of firms in the last few years.
Superintendent Linda A. Lacewell explained the approval is proof that innovation and consumer protection can work together in the state. DFS authorized Fidelity Digital Assets to provide virtual currency custody solutions and an execution platform for institutional investors and individuals to securely store, purchase, sell and transfer Bitcoin. The company wrote on Twitter,
— Fidelity Digital Assets (@DigitalAssets) November 19, 2019
Fidelity Digital Assets is a subsidiary of Fidelity Investments that aims at offering solutions to traditional and institutional investors in the cryptocurrency market.
Michael O’Reilly, Chief Operating Officer for Fidelity Digital Assets informed that the new license received by the DFS allows them to build the trustworthiness they need among institutions and other clients.
There are several financial companies that have started offering crypto-related solutions, services and products in New York. Some of these firms include the New York Stock Exchange, the CEM Group and the Intercontinental Exchange (ICE) that has been working on launching the physically-settled Bitcoin futures trading contracts platform called Bakkt earlier this year.