Crypto custodian BitGo receives „banking licence“

Crypto custodian BitGo receives „banking licence“ for financial mecca New York

The Goldman Sachs-backed crypto custodian is now allowed to operate in the strategically important US state of New York.

Major US crypto custodian BitGo has received a „banking licence“ from New York’s financial regulator NYDFS.

According to a related announcement, the licence will allow BitGo to offer crypto custody Bitcoin System services to institutional clients in New York who want to make large investments in cryptocurrencies.

Under the licence, BitGo will provide proper information collection (KYC) and anti-money laundering (AML) compliance. The cryptographic private keys for the associated wallets or funds will also be held „offline“ in bank vaults.

In this context, BitGo CEO Mike Belshe emphasises that the approval by the „New York State Department of Financial Service“ is an important step for his company to cooperate with leading financial institutions worldwide that are located in the state of New York.

California, the company offers professional custody

The CEO discloses that his firm is seeing increasing interest from institutional investors:

„The past year has been incredibly strong for BitGo and the crypto market as a whole, due in large part to the entry of large financial institutions that bring a new level of trustworthiness, liquidity and stability to the crypto ecosystem.“

BitGo had already applied for the New York banking licence in August 2020 to be allowed to operate as a crypto custodian in the strategically important state.

Founded in 2013 in Palo Alto, California, the company offers professional custody services for cryptocurrencies such as Bitcoin (BTC). The company is supported by renowned backers such as Goldman Sachs and the crypto investment companies Digital Currency Group and Galaxy Digital Ventures.

Last year, BitGo set up two subsidiaries in Germany and Switzerland, each of which is regulated by the relevant supervisory authorities.