BitGo, digital asset financial services provider, announced on Wednesday it has formally applied before the New York State Department of Financial Services (NYDFS) for a New York Trust to operate as an independent, regulated qualified custodian under New York State Banking Law.
BitGo reported that with the charter it will meet the “strong demand” by institutional investors based in New York who are seeking to secure large amounts of digital assets with a high level of security, regulatory oversight, and operational efficiency. Mike Belshe, CEO of BitGo, stated:
“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.”
BitGo further noted that combined with the recent developments emerging as a result of the recently issued guidance from the Office of the Comptroller of the Currency (OCC), it is expecting a dramatic increase in market demand for its products and services from banks, pension funds, hedge funds, and other fiduciaries.
BitGo New York Trust will offer:
- Regulatory oversight from one of the preeminent state regulators (NYSDFS)
- KYC/AML compliance
- Independently verified system controls (SOC 2 Type 2)
- Offline “Cold” storage of cryptographic keys in bank-grade Class III vaults
- Most transparent and comprehensive insurance coverage on the market today up to $100M in digital assets
- Depth and breadth of cryptocurrency experience
- Multi-Signature cryptographic technology
- Fast onboarding
- 24/7 support
Belshe added:
“Everyone at BitGo has been enormously impressed by NYDFS’ level of experience and professionalism with digital assets. Despite an unexpected global pandemic, their team has been extremely responsive and helpful and we look forward to a long relationship of cooperation with them.”