Plans by Fidelity Investments to launch a digital assets business have been given a boost New York's Department of Financial Services, which has grenlighted the firm's move into the state's rapidly growing virtual currency marketplace
NYDFS has authorized Fidelity to provide a virtual currency custody and execution platform, on which institutional investors and individuals can securely store, purchase, sell, and transfer Bitcoin.
“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,” states superintendent Linda Lacewell. “This approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry.”
Fidelity announced its plans to enter the digital asset market in October last year, and has since gone on a hiring and M&A spree to lay the foundations for its new cryptocurrency custody and trading platform.
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets,” says Michael O’Reilly, COO of 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.”
Including the charter granted to Fidelity, to date NYDFS has approved 23 charters or licenses for companies engaged in virtual currency business activities.