Fidelity’s Crypto Ambitions: Trust License Application in New York

Fidelity’s Foray into the Crypto World

Fidelity Digital Assets Services (FDAS) is on a quest that has left many in the crypto community buzzing. They’ve decided to throw their hat in the ring by applying for a trust license in New York State. Yes, that’s right! This move could place them on the fast track to offering their crypto custodial services in one of the most watched-over financial landscapes in the United States.

What’s the Deal with the Trust License?

According to well-placed sources—who, let’s be honest, are probably just as confused as the rest of us—FDAS has filed an application with the New York Department of Financial Services (NYDFS). This trust license could provide FDAS with broader powers than the infamous BitLicense, which is the typical crypto license newbies often hear about. In fact, as attorney Arthur Long suggests, this trust license might pave the way for FDAS to branch into offering financial advice and a whole range of other financial services.

Impact on the Crypto Space

If approved, this move might just open the floodgates for more established financial institutions to dive into the crypto waters. Imagine banks everywhere suddenly wanting to play with Bitcoin—it could feel like a high-stakes game of musical chairs! The license would help FDAS operate as a Limited Purpose Trust Company, allowing them to offer services that could solidify their standing in the realm of digital assets.

FDAS’s Expanding Team: A Nod to Seriousness

In April, FDAS made headlines by hiring Christine Sandler, a former executive from Coinbase, as their head honcho for Sales and Marketing. By snagging someone with her experience, it’s clear that FDAS is not just dipping their toes in but is ready for a full cannonball into the deep-end of the crypto pool. With her expertise, FDAS aims to enhance its service to institutional clients—who, let’s face it, tend to carry a larger wallet than your average Joe.

The Competitive Landscape: A New Era for Crypto

Meanwhile, talk about the competition heating up! Recently, social media titan Facebook (yep, the Zuck’s playground) has also knocked on the NYDFS’s door, applying for a cryptocurrency business license of its own to launch its anticipated stablecoin, Libra. Now that sounds like an arena where the big players are getting serious about crypto!

Conclusion: A Step Forward or Just Another Hop?

Only time will tell whether FDAS’s trust license application will become a game changer or just a speed bump in the long road of crypto regulation. But one thing’s for sure—everyone is watching with bated breath (and quite possibly, some popcorn).