Cryptocurrency custody and security service provider, BitGo has announced that it has obtained a New York Trust license to operate as an independent, regulated qualified custodian under New York State Banking Law. The approval will position the Goldman Sachs crypto entity to compete for a market share in the growing world of cryptocurrencies.
Cryptocurrency custody service is a specialized engagement that helps crypto investors with a high amount of funds invested in digital currencies to secure their holdings through banking grade provisions. The BitGo license was granted by the New York Department of Financial Services (NYDFS), and will let the company harness the opportunity in the country’s biggest crypto hub, under regulatory backing.
“We are extremely proud to receive the approval for a trust charter from NYDFS to serve the world’s premier financial organizations that are based in New York State,” said Mike Belshe, CEO, BitGo. “The past year has been exceptional for BitGo and the digital asset markets overall, primarily due to the influx of large financial services institutions that bring a new level of credibility, liquidity, and stability to the crypto ecosystem.”
Through the crypto custody service, BitGo will extend its expertise to its clients. Such expertise or services include the provision of Know-Your-Customer (KYC), and Anti-Money Laundering (AML) compliance checks. Additionally, Offline “Cold” storage of cryptographic keys in bank-grade Class III vaults, and offer the most transparent and comprehensive insurance coverage on the market today up to $100M in digital assets.
BitGo will propound its crypto custody offering by drawing on its expertise in the development of Multi-Signature Security, a system adopted in protecting digital wallets
Latest Caution From NYAG Not Impacting BitGo’s Market Push
As reported by Blockchainjournal.news, the Office of the New York Attorney General (NYAG) released a memo, advising New York residents and Americans as a whole to beware of cryptocurrency investments.
While the caution was resounding, it is obviously not impacting the advances of firms like BitGo, with huge expectations that the ongoing embrace of Bitcoin and other digital currencies by both retail and corporate investors will continue to surge.
Besides Goldman Sachs, BitGo is also backed by other crypto industry giants including Digital Currency Group, and Galaxy Digital Ventures.