A leading digital asset and financial services provider working in the crypto space, BitGo recently acquired a New York Trust license to operate as an independent, regulated qualified custodian under New York State Banking Law. Issued by The New York State Department of Financial Services (NYDFS), the license enables BitGo to legally provide custodial services for New York clientele. The firm applied for the New York Trust charter in August 2020.
In 2013, BitGo led the development of multi-signature (multisig) security for digital wallets. Founded in 2013 in Palo Alto, California, BitGo's institutional-grade multi-signature security offering is an open source protocol that uses distinct private keys specifically assigned to unique users (multi-user). This produces accountability, transparency, and security for digital wallets.
The company claims that with its expansion to custodial services for New York clients, their crypto and digital asset ecosystem will provide improved security, regulatory oversight, and operational efficiency. In 2020, the firm has also begun the establishment of regulated custody entities in Germany and Switzerland to expand its offerings, following increased demand in the European region.
“We are extremely proud to receive the approval for a trust charter from NYDFS to serve the world’s premier financial organizations that are based in New York State,” shared BitGo CEO Mike Belshe.
Through the license, BitGo can now provide KYC (Know Your Customer) and Anti-Money Laundering (AML) compliance processes for its clients registered in New York. This also means that, with due diligence, BitGo can now actively promote and offer cold storage (offline) of cryptographic keys in its secure vaults. BitGo New York Trust will also offer independently verified system controls (SOC 2 Type 2).
“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. Our new charter is an important milestone to serve these clients within New York State’s regulatory framework,” added BitGo Chief Revenue Officer Pete Najarian.
The licensing agreement comes after Belshe's recent disclosure that the digital asset infrastructure company currently holds $250 million worth of Bitcoin on its balance sheet. This estimated amount has been sitting in BitGo's holdings since 2014.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.