The Fidelity technical board ensures that the NYDFS license will facilitate the entry of institutional investors into the cryptocurrency ecosystem.
The Fidelity division for digital currency operations, Fidelity Investment, has officially received authorization from the New York Department of Financial Services (NYDFS) to operate a platform that allows investors to store, buy, sell and transfer BTC funds.
According to an announcement published yesterday, the regulatory body granted a statute endorsed by the New York state banking law with which it endorses Fidelitiy Digital Asset Services LLC (FDAS) to operate as a cryptocurrency trading company in accordance with the provisions established in BitLicense.
The agency indicates in the statement:
“DFS authorizes Fidelitiy Digital Asset Services LLC to operate a digital platform for the custody and commercialization of cryptocurrencies, in which institutional investors and individuals can store, buy, sell and transfer bitcoins securely.”
The directors of Fidelity Digital Asset Services LLC declared:
“We hope to make our custody and commercial execution services available to New York-based companies … We have seen a lot of interest from these companies and we believe that a greater presence of this industry in the ecosystem will lead to more activities and development for the sector.”
23 BitLicenses have been issued so far
On the approval by the NYDFS, the FDAS director of operations, Michael O’Reilly, said:
“The custody and trade services we provide are essential components for greater adoption of digital assets among institutional investors … The designation as a fiat company in New York under the supervision of the DFS is evidence of the credibility and trust that characterize us, which we offer to investors and other market participants. “
Fidelity is listed as the 23rd company to receive an authorization from the regulatory body, which has only duly authorized a very small number of companies interested in operating in New York since the law came out in 2015.
Before Fidelity, the last company to receive authorization was Bakkt Trust Company LLC, which trades with BTC futures on the New York Stock Exchange.
Other companies have also received permission from the NYDFS this year, including Paxos, Seed Digital Commodities Market, Zero Hash, Bitstamp and Tagomi Trading. However, not all cases were successful, since for April the regulatory body rejected the request made by the managers of the Bittrex exchange, which cannot carry out operations for the cryptocurrency trade within the state of New York.