- Charter License Obtained
- Fireblocks' Plans
- Benefits of Limited Charter License
On August 14, Fireblocks announced it had received a New York state charter to custody cryptocurrency for clients in the United States.
Charter License Obtained
Fireblocks Trust Company, LLC has received its limited purpose trust company charter to engage in virtual currency business and will soon begin offering cold storage custody solutions powered by Fireblocks' technology to US customers.
Fireblocks' Plans
In May, Fireblocks announced its intention to launch a limited-purpose trust company regulated by the New York Department of Financial Services (NYDFS) named Fireblocks Trust Company, which will offer cold storage custody solutions to US clients. Fireblocks now joins a growing list of institutional crypto companies, including Coinbase Custody Trust, Fidelity Digital Asset Services, and PayPal Digital, authorized by NYDFS to custody assets.
Benefits of Limited Charter License
Obtaining a limited purpose trust charter is an alternative to New York's demanding BitLicense regime for crypto companies seeking to do business in the state. Limited purpose trust companies can exercise fiduciary powers, including custodial services, and can engage in money transmission in New York without obtaining a separate New York money transmitter license.
Obtaining the New York state charter is part of Fireblocks' broader plan to create a global network of regulated cryptocurrency custodians. These solutions will support the needs of institutional market participants.
