New York State Trust License - Fidelity’s Step Towards Mass Crypto Adoption?
Fidelity’s cryptocurrency investment arm, Fidelity Digital Assets (FDAS) has filed for a trust license in the state of New York according to several sources. An approved application with the New York Department of Financial Services (NYFDS) will mean that FDAS will be able to offer custodial services for digital assets in the state of New York. FDAS was launched in October 2018, with the aim of providing institutional solutions for the digital asset class.
Earlier this year in May, Bloomberg reported that Fidelity will be offering more than just custodial services such as crypto trading. The crypto arm of one of the largest asset managers in the world will now be able to compete with rivals such as Coinbase, Gemini, Paxos and other large players in the crypto custodial market.
Arthur Long, a lawyer from Gibson Dunn mentioned that a trust license is “more expansive” than the BitLicense of the state of New York which is a license for crypto firms, according to The Block. By obtaining a trust license, the firm will be allowed to execute a wider range of services in the financial services industry.
What does this mean for crypto investors?
The International Crypto Exchange (ICE)’s cryptocurrency trading platform, Bakkt is also waiting for approval from the NYDFS and will also be competing with FDAS. Institutions are willing to take the step to go through substantial processes to allow regulators to get a more in-depth understanding of crypto businesses.
Image via bitcoinexchangeguide.com