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Today, BitGo announced that it received a Trust Charter that will permit to function as an independent qualified custodian in the U.S. commercial hub, New York. The New York State Department of Financial Services granted the license. The trust company charter from the New York State Department of Financial Services allows BitGo to provide its cryptocurrency trading and custody services to companies based in the state.
BitGo is now even more substantial with its designation as a qualified custodian under the SEC’s requirements. Additionally, NY approval decreases dependence on third-party financial institutions. It enables the exchange to facilitate deposit-taking, custody, and fiduciary services for digital assets, customarily limited to banks or registered broker-dealers. BitGo emphasized its banking bid’s approval in a statement, continuing that it can now render the technology and regulatory clarity that New York’s investment advisors need.
BitGo to provide Sub-Custody Services for financial institutions
With a banking charter, BitGo can offer sub-custody services for financial institutions looking to secure many digital assets, such as holding assets for the leading custodian. The institutional crypto custodian already provides its users to cover up to $100 million worth of their digital assets in their accounts. BitGo’s admittance to New York’s crypto ecosystem reduces regulatory complexities. Moreover, the company now battles with other custody providers and exchanges. Moreover, it involves Coinbase, Gemini, and Paxos as they have secured similar licenses.
BitGo aims to go all-in for its proposed clients. Apart from its fully secured custodial services, it described various advantages of the New York Trust. It will utilize a modern, independently verified system control, SOC 2 Type 2. The SOC 2 Type 2 compliance registers how a company safeguards consumer’s data. Moreover, this system control model confirms compliance with standard procedures and frequently provides a competitive edge. Currently, BitGo collaborated with KPMG and Coin Metrics to fuel institutional and adoption of crypto with a product suite to control blockchain network uncertainties.
Furthermore, the city of New York is becoming a destination for prominent crypto companies. Recently, leading blockchain sports and entertainment platform, ChiliZ advocated establishing an office in New York. Perhaps this is kindled by the state’s consistent attempts to maintain a regulated framework that draws investment and prioritizes asset protection. The state’s Department of Financial Services authorized the sale and trading of eight cryptocurrencies in August last year.