This article highlights Fireblocks’ achievement in obtaining a New York state charter to provide cryptocurrency custody services in the U.S. The charter marks a significant step in the company’s expansion strategy, allowing it to offer secure, regulated custody solutions to institutional clients.
Points
- Fireblocks received a New York state charter to offer crypto custody services in the U.S.
- The charter enables Fireblocks to provide regulated cold storage solutions, meeting institutional demand.
- Fireblocks joins the ranks of other major players like Coinbase and Fidelity in offering custody services under New York regulation.
- The move is part of Fireblocks’ broader plan to create a global network of regulated crypto custodians.
Fireblocks, a leading provider of Web3 infrastructure, has made a significant advancement in its service offerings by securing a New York state charter to provide cryptocurrency custody services. This achievement, announced in mid-August, enables Fireblocks to operate as a limited-purpose trust company, thereby expanding its ability to offer regulated cold storage solutions to institutional clients in the U.S.
The New York Department of Financial Services （NYDFS）, known for its stringent regulatory standards, granted the charter to Fireblocks Trust Company, LLC. This development positions Fireblocks among other major institutional players, such as Coinbase Custody Trust and Fidelity Digital Asset Services, that have been authorized to offer crypto custody services under New York’s rigorous regulatory framework.
By obtaining this charter, Fireblocks can now provide cold storage solutions powered by its technology, ensuring secure and compliant storage of digital assets for U.S. customers. Cold storage refers to the offline storage of cryptocurrencies, which significantly reduces the risk of hacking compared to online, or “hot,” wallets. This feature is particularly critical for institutional investors, who require the highest levels of security and regulatory compliance to protect their assets.
The establishment of Fireblocks Trust Company is a key component of the company’s broader strategy to create a global network of regulated cryptocurrency custodians. Earlier in June, Fireblocks launched a global network of licensed digital asset custodians, aiming to connect customers through its platform while ensuring compliance with local regulations in each jurisdiction. This network is designed to meet the growing institutional demand for Qualified Custody services, which are essential for investment advisors, asset managers, and ETF issuers managing digital assets.
In addition to the enhanced security offered by cold storage, the limited-purpose trust charter provides Fireblocks with several regulatory advantages. For example, it allows the company to engage in money transmission in New York without needing a separate money transmitter license, streamlining its operations and broadening its service offerings.
As the demand for secure, regulated custody solutions continues to grow, Fireblocks is well-positioned to capitalize on this trend. The company’s expansion into the U.S. market with the backing of NYDFS not only strengthens its competitive position but also reinforces its commitment to providing high-quality, compliant services to institutional clients.
解説
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Cold Storage: Cold storage refers to keeping digital assets offline, away from the internet, which significantly reduces the risk of hacking and unauthorized access. It is a preferred method of storage for institutions that hold large amounts of cryptocurrency, offering enhanced security compared to hot wallets, which are connected to the internet.
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Limited-Purpose Trust Charter: This type of charter allows financial institutions to conduct specific activities, such as custodial services, without being subject to the full range of banking regulations. For Fireblocks, this means they can provide fiduciary services, including the safekeeping of digital assets, while also engaging in money transmission within New York State without needing additional licenses.
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Institutional Demand: As more traditional financial institutions and investment firms enter the digital asset space, the need for secure, regulated custody solutions has increased. Fireblocks’ ability to meet these demands with a NYDFS-regulated service positions it as a key player in the evolving landscape of digital finance.
Fireblocks’ entry into the regulated U.S. market with a New York state charter underscores the growing institutionalization of the cryptocurrency industry. As more firms seek secure and compliant ways to store and manage digital assets, the role of regulated custodians like Fireblocks will become increasingly important in supporting the broader adoption of cryptocurrencies in the financial sector.