Fidelity Digital Assets receives regulatory approval to custody Bitcoin for institutional investors
Fidelity Digital Assets has obtained a trust company charter courtesy of the New York Department of Financial Services (DFS) to engage in “virtual currency business activities” according to a press release. The regulatory approval provides the Fidelity Investments subsidiary the legal freedom to serve as a Bitcoin ($BTC) custody and execution platform for institutional investors. With the news, the company became the 23rd crypto-focused company to receive DFS approval for a charter or Bitlicense.
Why it matters:
- Fidelity Investments is one of the premier incumbents that have a long-standing affiliation with Bitcoin. Reports suggest Fidelity started mining Bitcoin as early as 2014, and the team has a history of helping grow Bitcoin adoption among institutional investors.
- The news coincided with the Galaxy Digital Holdings announcement that it selected Fidelity (alongside Intercontinental Exchange's Bakkt) to safeguard the Bitcoin holdings in its new funds.
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