Fidelity Crypto Division Applies for Trust License From New York

Fidelity’s crypto subsidiary Fidelity Digital Assets Services (FDAS) is trying to obtain a license from New York State to function as a trust.

In this regard, an application for trust license was submitted by FDAS to the New York Department of Financial Services (NYDFS), the Block revealed on July 20, quoting several unidentified individuals associated with the incident.

If the license is granted, the study states that FDAS will be able to formally sell its crypto-custodial facilities in New York State, functioning as a Limited Purpose Trust Company.

Lawyer Arthur Long has pointed out that the trust license is bigger than the standard NYDFS crypto license, BitLicense, allowing its holder to offer more professional services such as financial advice.

The publicity for The Block has not been verified by Fidelity as of the media moment. Christine Sandler, former executive of famous American exchange and wallet provider Coinbase, was recruited by FDAS as director of sales and marketing in April. Sandler was roped in by the company to guide institutional client service and was supposedly headquartered in New York.

Back in mid-May FDAS was collaborating to increase the strength of its engineering group working on blockchain. Of late, Reuters revealed that Facebook, a social media platform provider, filed a request with NYDFS requesting a cryptocurrency business license to manage its intended stablecoin libra in New York.