Prominent Web3 infrastructure provider Fireblocks announced on August 14, 2024, that the New York Department of Financial Services (NYDFS) has awarded it a limited-purpose trust corporation charter.
With this new classification, Fireblocks can provide bitcoin custody services to customers nationwide while adhering to New York State’s regulations.
This month marks the launch of Fireblocks Trust Company, LLC, which will offer cold storage custody options based on Fireblocks’ technology. This action is in line with Fireblocks’ previous intentions to create an institutional needs-focused limited-purpose trust corporation under NYDFS regulation.
The creation of a worldwide network of regulated cryptocurrency custodians is Fireblocks’ overarching objective, which includes the charter. To improve its capabilities through the Fireblocks platform, Fireblocks announced a global network of licensed digital asset custodians in June.
The limited-purpose trust charter is an alternative to New York’s strict BitLicense framework providing advantages including the capacity to perform money transfers and execute fiduciary functions without requiring an extra license.
This regulatory framework was created to meet the increasing demand from institutional investors, such as asset managers and registered investment advisers, for qualified custody solutions.
As per the NYDFS, Fireblocks is the latest institutional cryptocurrency company to get asset custody authorization from NYDFS, following Coinbase Custody Trust, Fidelity Digital Asset Services, and PayPal Digital. With this move, Fireblocks, which has historically concentrated on user-managed wallets but is now expanding to incorporate regulated custody solutions, is taking a big step forward.
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