Fidelity Granted Crypto Charter from NY Department of Financial Services
The New York State Department of Financial Services (NYDFS) has granted Fidelity Digital Asset Services, LLC (FDAS) a charter to operate a cryptocurrency custody platform.
The NYDFS authorized Fidelity’s request to operate cryptocurrency custody services, as well as, execute a platform for both institutional and retail investors to buy, sell, and story bitcoin (BTC).
“This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry,” stated Linda A. Lacewell, Superintendent of Financial Services for the NYDFS.
Commenting on the development, Michael O’Reilly, COO for Fidelity Digital Assets, said:
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions and other market participants. We will continue to play a leading role in supporting the maturation of the entire ecosystem as we expand our business and the clients we serve.”
Earlier this month, Fidelity hired product specialist Michael Zinaman to oversee the firm’s strategy regarding cryptocurrencies, custody, and execution services.
In October, Fidelity CEO Abigail Johnson stated the company had officially launched its crypto custody services after a year of preparation and adding clients.
Institutional bitcoin trading platform Bakkt established regulatory approval from the NYDFS earlier this year, allowing them to motion custody services to any institution.
Until that time, the option was only available for those trading its bitcoin futures.