Superintendent of Financial Services Linda A. Lacewell announced today that the New York State Department of Financial Services (DFS) has granted a charter under New York Banking Law to Fidelity Digital Asset Services, LLC (FDAS), 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 Lacewell. “This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry.”
DFS has authorized FDAS to provide a virtual currency custody and execution platform, on which institutional investors and individuals can securely store, purchase, sell, and transfer bitcoin (BTC).
FDAS is a subsidiary of the Fidelity financial services company, which had assets under administration of nearly $7.0 trillion as of December 2018. Including the charter granted to FDAS, to date, DFS has approved 23 charters or licenses for companies engaged in virtual currency business activities.
“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 for Fidelity Digital Assets. “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.”
DFS began licensing the virtual currency business with the promulgation of its BitLicense regulation in 2015. Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found on the DFS website.
Discussion