PALO ALTO, Calif.--(BUSINESS WIRE)--BitGo, the leader in digital asset financial services, today announced that it has formally applied before the New York State Department of Financial Services (NYDFS) for a New York Trust to operate as an independent, regulated qualified custodian under New York State Banking Law. With this charter, BitGo will meet the strong demand by the world’s leading institutional investors based in New York, who are seeking to secure large amounts of digital assets with the highest level of security, regulatory oversight and operational efficiency.
“New York State has developed an exceptional regulatory framework for digital assets and BitGo is very proud for this opportunity to apply for a trust charter to serve the world’s most sophisticated community of institutional investors based in New York,” said Mike Belshe, CEO, BitGo. “Everyone at BitGo has been enormously impressed by NYDFS’ level of experience and professionalism with digital assets. Despite an unexpected global pandemic, their team has been extremely responsive and helpful and we look forward to a long relationship of cooperation with them.”
New York-based financial institutions are critical for the accelerated adoption and acceptance of digital assets and BitGo has received tremendous interest from institutional investors in the State. Combined with the recent developments emerging as a result of the recently issued guidance from the Office of the Comptroller of the Currency (OCC), BitGo is expecting a dramatic increase in market demand for its products and services from banks, pension funds, hedge funds and other fiduciaries.
In 2018, BitGo Trust Company became the first qualified custodian purpose-built for storing digital assets through the South Dakota Division of Banking. Built on BitGo's pioneering, battle-tested, multi-signature scheme, BitGo Custody delivers modern security for modern assets. BitGo Custody offerings provide the strict policies, procedures, controls, and disclosures that are only guaranteed with a qualified custodian.
BitGo New York Trust will offer:
- Regulatory oversight from one of the preeminent state regulators (NYSDFS)
- KYC/AML compliance
- Independently verified system controls (SOC 2 Type 2)
- Offline “Cold” storage of cryptographic keys in bank-grade Class III vaults
- Most transparent and comprehensive insurance coverage on the market today up to $100M in digital assets
- Depth and breadth of cryptocurrency experience
- Multi-Signature cryptographic technology
- Fast onboarding
- 24/7 support
BitGo pioneered multi-signature security in 2013 and, since then, has become an industry standard for security of digital wallets. Multi-signature is an open source protocol, and has been subject to thorough testing and evaluation by the security community. Multi-signature makes use of distinct private keys specifically assigned to individuals for increased accountability, transparency and security not available through other technologies.
BitGo is the leader in digital asset financial services, providing institutional investors with liquidity, custody, and security solutions. In 2020, the company launched BitGo Prime, the first and only integrated solution with lending, trading and qualified custody, as well as BitGo Portfolio and Tax solutions. BitGo Trust Company, the first qualified custodian purpose-built for storing digital assets, was launched in 2018. BitGo processes over 20% of all global Bitcoin transactions, and supports over 250 coins and tokens. BitGo’s customer base includes the world's largest cryptocurrency exchanges and spans more than 50 countries. BitGo is backed by Goldman Sachs, Craft Ventures, Digital Currency Group, DRW, Galaxy Digital Ventures, Redpoint Ventures, and Valor Equity Partners.
Custody services are currently offered through BitGo Trust Company, a South Dakota chartered trust company. BitGo is not registered with the SEC, and does not offer legal, tax, investment, or other advice. Please consult your legal/tax/investment professional for questions about your specific circumstances.