Fidelity Digital Asset Services has acquired a trust company charter from the New York Department of Financial Services (NYDFS), enabling the Fidelity Investments unit to custody bitcoin for institutional investors in the financial capital of the U.S.
FDAS joins 22 different organizations that have been authorized for a license or charter by the watchdog to take part in digital currency business operations, NYDFS stated.
“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets,” Fidelity Digital Assets Chief Operating Officer Michael O’Reilly said in a press release. “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”
The news comes following Galaxy Digital Holdings’ announcement that it was picking Fidelity and Intercontinental Exchange’s Bakkt (which holds an NYDFS trust license also) to store the bitcoin for its two new funds. A couple of months prior, Fidelity went on contracting specialists in blockchain and exchanging.