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BitGo seeks to operate as a regulated crypto custodian in New York

Updated: Aug 28, 2020

Crypto custody company and the leader in digital asset financial services BitGo announced to have formally applied before the New York State Department of Financial Services (NYDFS) for a New York Trust Charter to operate as a regulated crypto custodian under the state's banking law.

Mike Belshe, CEO of BitGo, stated that “New York State has developed an exceptional regulatory framework for digital assets and BitGo is very proud for this opportunity to apply for a trust charter to serve the world’s most sophisticated community of institutional investors based in New York".

New York-based financial institutions play a crucial role in a fast adoption and acceptance of digital assets, and institutional investors in the State have shown an enormous interest in BitGo. Since the Office of the Comptroller of the Currency (OCC) recently issued guidance allowing banks to hold cryptocurrency, BitGo is expecting a significant boost in market demand for its products and services from banks, as well as pension funds, hedge funds, and other trustees.

According to the announcement, “With this charter, BitGo will meet the strong demand by the world’s leading institutional investors based in New York, who are seeking to secure large amounts of digital assets with the highest level of security, regulatory oversight and operational efficiency".

BitGo New York Trust is planning to provide services that are only guaranteed with a qualified custodian. These services will include regulatory oversight from one of the preeminent state regulators NYSDFS, KYC/AML compliance, independently verified system controls, multi-signature cryptographic technology, and others.

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