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Digital asset trust company, BitGo has added another feather to its cap. The company announced today that it has received a Trust Charter that will enable it to operate as an independent qualified custodian in the United Statesā commercial hub, New York. The license was issued by the New York State Department of Financial Services.
Go, BitGo
California-based digital asset solutions provider, BitGo has expanded its horizon. It will now render cryptocurrency custodial services to New York-based institutional clients. The news was confirmed after the stateās Department of Financial Services issued the New York Trust charter to the company.
BitGo is proud to announce a new license under New York State Banking Law to operate as an independent Qualified Custodian. Read more: https://t.co/IfTGOJ1hc0 pic.twitter.com/VO9wqxgXUl
ā BitGo (@BitGo) March 4, 2021
The news reiterates the companyās motive to exhaust the possibilities of the new financial landscape. It announced in December last year that it had over $16 billion in assets in its custody. With the surge in institutional interest, BitGo now has its eyes set on the worldās financial and commercial epicenter. Speaking on the latest milestone, BitGo CEO Mike Belshe said:
āWe are extremely proud to receive the approval for a trust charter from NYDFS to serve the worldās premier financial organizations that are based in New York State. The past year has been exceptional for BitGo and the digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity and stability to the crypto ecosystem.ā
The license will enable New Yorkās premier institutions to key into the digital revolution while staying within the stateās regulatory framework. BitGoās list of reputable partners adds an extra layer of trust. It claims to be backed by Goldman Sachs, Craft Ventures, Digital Currency Group, Redpoint Ventures, and Valor Equity Partners.
Whatās In Store?
BitGo intends to go all-in for its prospective clients. Asides from its fully secured custodial services, it outlined several benefits of the New York Trust.
It will adopt a sophisticated, independently verified system control ā SOC 2 Type 2. The SOC 2 Type 2 compliance records how a company safeguards customerās data. This system control type verifies compliance with standard procedures and often gives a competitive edge.
Prospective clients will benefit from BitGoās ācomprehensive insurance coverage,ā which it says covers up to $100 million in digital assets. Its multi-signature technology is yet another selling point.
New York ā The New Crypto Hub?
The city of New York is becoming a destination for mainstream cryptocurrency companies. This week, leading blockchain sports and entertainment platform, ChiliZ announced that it would set up an office in New York.
Perhaps this is fueled by the stateās unwavering efforts to maintain a regulated framework that attracts investment and prioritizes asset protection. The New York Financial Services Law, which was enacted five years ago, necessitates the regulation of companies in the digital asset space. The stateās Department of Financial Services approved the sale and trading of eight cryptocurrencies in August last year.
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