Fidelity Digital Assets applies for trust license in New York: Report

Fidelity’s crypto arm Fidelity Digital Assets (FDAS) has reportedly applied for a trust license at the New York Department of Financial Services (NYDFS), according to The Block citing anonymous sources with knowledge about the matter.

As per the report, if the FDAS application is approved, it will be allowed to provide crypto custodial services in the Empire State and operate as a Limited Purpose Trust Company.

Citing Arthur Long, a lawyer from Gibson Dunn, the report noted that FDAS’ trust license is broader than the typical BitLicense issued by the NYDFS. The trust license allegedly enables the bearer to offer more expansive services including financial advice.

However, Long said it would take some time before FDAS secures such license as it entails banks or trust companies to “go through a substantial process.”

The news follows after FDAS recently onboarded former Coinbase executive Christine Sandler as its head of Sales and Marketing. In its announcement last April, the company said that Sandler will lead its efforts to expand into new markets and serve a broader set of institutional clients.

Meanwhile, Seed CX subsidiaries, Seed Digital Commodities Market LLC and Zero Hash LLC, were recently awarded virtual currency licenses by the NYDFS.