New York has been at the center of a lot of crypto-related developments over the past few months. New York’s authorities are in the news again after the NYDFS granted a charter to Fidelity Digital Asset Services LLC (FDAS) for operating as a limited liability trust company. The development in question highlights New York Department of Financial Services’ (DFS) growing interest in the virtual currency space.
FDAS joined a list of 23 other companies who have received a license for engaging in the virtual currency business. Superintendent of Financial Services, Linda A. Lacewell, expanded on the recent development and said,
“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. This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry.”
This is a crucial development in light of the fact that many crypto-related entities have been drifting away from the American market. By getting an authorization from the DFS, FDAS will now be able to deliver virtual currency custody and execution platform-related services to its users. Crypto-hobbyists and traders will also be able to store, buy, sell and transfer Bitcoin.
The news also has the potential to bolster the company’s rapid expansion. Michael O’Reilly, Chief Operating Officer for Fidelity Digital Assets, was elated with the approval and commented,
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of 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.”