Cryptocurrencies

BitGo Applies to Be Regulated Custodian in New York State

BitGo CEO Mike Belshe said interest from institutional traders has grown amid the economic impact of the COVID-19 crisis. (Credit: CoinDesk archives)

Crypto custody provider BitGo has filed paperwork with New York’s financial regulator to offer its services in the state.

In an announcement Tuesday, the company said it was seeking approval from the New York State Department of Financial Services (NYDFS) to act as a trust in the jurisdiction.

It plans, if approved, to operate as an “independent, regulated qualified” custodian under the state banking law.

Related: BitGo Weighs Building a Sidechain for WBTC as Ethereum Fees Climb

BitGo said it was targeting “strong demand” from institutional investors based in New York for secure and regulated storage of large amounts of digital assets.

See also: BitGo Now Supports Custody and Staking of Tezos’ XTZ

After July guidance from the Office of the Comptroller of the Currency allowing U.S. banks to act as crypto custodians, BitGo said it’s expecting a “dramatic increase in market demand for its products and services from banks, pension funds, hedge funds and other fiduciaries.”

BitGo Trust Company is already a qualified custodian through the South Dakota Division of Banking.

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Cryptocurrencies Videos

CoinDesk

CoinDesk is the leading digital media, events and information services company for the crypto asset and blockchain technology community. Its mandate is to inform, educate and connect the global community as the authoritative daily news provider dedicated to chronicling the space. Founded in May 2013, CoinDesk reaches millions interested in blockchain technology thru its website, social media, newsletters, podcasts and video. CoinDesk created the original reference rate known as the Bitcoin Price Index which is widely sourced in the media including The Wall Street Journal, Financial Times, CNBC and many others on a daily basis.

Learn More