American custodian service BitGo received permission to operate as a trust company from the New York State Department of Financial Services (NYDFS).
BitGo applied for a license in August 2020 to legally provide crypto asset custody services to institutional clients in New York State. BitGo CEO Mike Belshe said that the license will allow the digital assets of international financial institutions that are ready to make large investments in cryptocurrencies in accordance with local legislation.
To ensure security, service customers will be required to go through the KYC and AML procedures. Thanks to the license obtained, BitGo will be able to cold store cryptographic keys in bank-grade vaults. Belsch noted that the number of institutional clients of the company has grown significantly lately.
“The past year has been exceptional for BitGo and for the entire digital asset market. This is due to the influx of large financial institutions that are taking the cryptocurrency ecosystem to a new level, ensuring its liquidity and stability, ”said Belsch.
BitGo was founded in California in 2013. Previously invested in it were Goldman Sachs, Barry Silbert’s Digital Currency Group venture capital firm, and Galaxy Digital Ventures. Last year, BitGo opened regulated divisions in Switzerland and Germany, as these countries have become important strategic hubs for traditional finance and digital assets.
Recall that last year, BitGo began providing cold storage services for cryptocurrencies to the Japanese exchange Bitgate, and also launched the BitGo Prime trading platform for institutional investors.
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