BitGo, the custodian, obtains a New York trust license

The New York State Department of Financial Services (NYDFS) has granted BitGo, a custodian service, permission to operate as a trust company.

BitGo is proud to announce a new license under New York State Banking Law to operate as an independent Qualified Custodian. Read more: https://t.co/IfTGOJ1hc0 pic.twitter.com/VO9wqxgXUl

— BitGo (@BitGo) March 4, 2021

According to the press release, the trust license will permit the custodian to store the cryptographic keys of international financial institutions in bank-grade cold wallets in compliance with local law.

BitGo chief Mike Belshe said that, for security reasons, customers will have to undergo KYC and AML checks. He noted that institutional demand for the custodian’s services has been rising recently.

“The past year has been exceptional for BitGo and for the entire digital asset market thanks to inflows from large financial institutions into the sector. They are taking the cryptocurrency ecosystem to a new level, providing liquidity and stability,” said Belshe.

In May 2020, BitGo launched the BitGo Prime platform for institutional investors, enabling clients to execute trading operations directly from cold storage.

Back in March 2021, the custodian disclosed investments in Bitcoin of $250 million. According to Belshe, BitGo added digital gold to its balance sheet in 2014.

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