Fidelity Digital Assets Services has reportedly officially applied to launch a New York trust. According to a fresh report, this could see Fidelity Digital Assets be able to operate a custody business for digital assets in New York.
Fidelity Digital Assets seeks New York Trust license
First and foremost, Fidelity Digital Assets Services (FDAS) is the cryptocurrency arm of the well-known Wall Street brokerage firm Fidelity. Moreover, the news that Fidelity Digital Assets has submitted an official application for a New York Trust license came from crypto news outlet The Block.
If this application ends up being successful, it will reportedly see Fidelity Digital Assets being free to add New York to the handful of existing states it currently operates its custody business in.
As such, this comes as the latest development for Fidelity Digital Assets in its strive to go toe-to-toe with other crypto custody rivals, such as Coinbase. What’s more, the sector is heating up, as firms such as Paxos and Gemini are also gearing up to present their own crypto custody offerings.
Fidelity Digital Assets was originally launched last October, as an offshoot of the existing Wall Street brokerage firm Fidelity. Following this, Fidelity Digital Assets has been ramping up operations ever since.
Will this be one of the first steps towards conquering Wall Street?
The firm launched a cryptocurrency custody solution earlier this year, and has attracted a number of experienced executives to head this custody arm. Consequently, this is the activity which Fidelity Digital Assets has now sought a New York Trust license for.
With this said, however, it could still take some time for Fidelity Digital Assets to receive this license. Securing a New York Trust license takes an average of around half a year, according to the report from The Block. Arthur Long, a lawyer, notes the rigors of the license process:
“Any bank or trust company is going to have to go through a substantial process so that the regulators understand the business.”
Securing a trust license in the state of New York will be a major step forward for Fidelity Digital Assets, if the company indeed manages to receive it. New York, and New York City in particular, is an important driver for financial activity in the US.
What’s more, operating on Wall Street will therefore, naturally, require licenses for operating in the state of New York. As such, it will be interesting to see what comes of Fidelity Digital Assets application.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.