Fidelity Digital Asset Services (FDAS) has been granted a charter by the New York State Department of Financial Services (DFS) under New York Banking Law, allowing it to operate as a limited liability Trust Company as part of the state’s rapidly growing virtual currency marketplace.
“As the financial capital of the world, New York must also continue to be the center of financial innovation. DFS will continue to provide regulatory oversight of new technologies to both foster innovation and protect consumers, companies and markets,” said Superintendent of Financial Services Linda A. Lacewell in a press release. “This approval is further evidence that innovation and consumer protection can co-exist in New York’s evolving and expanding financial services industry.”
With the charter, FDAS can provide a virtual currency custody and execution platform where investors and individuals can store, purchase, sell and transfer bitcoin.
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets,” said Michael O’Reilly, chief operating officer of FDAS. “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.”
In other news, Bitcoin.com announced that it will launch a $200 million BCH investment fund next year to focus on payment-related solutions and non-custodial financial services for Bitcoin Cash.
“We are super excited to launch the $200 million ecosystem fund that will rapidly scale up Bitcoin Cash-focused businesses,” said Bitcoin.com CEO Stefan Rust in an announcement. “Bitcoin.com receives between six to eight business plans every day from software entrepreneurs leveraging the unique features and capabilities of the Bitcoin Cash blockchain. Bitcoin.com now has the resources and team to support these BCH entrepreneurs, grow the value of their businesses and spread Bitcoin Cash adoption.”