2024

United

Partner

Fireblocks, a cryptocurrency safekeeping specialist, plans to establish a limited-purpose trust company under the jurisdiction of the New York Department of Financial Services (NYDFS).&nbsp; 
This new entity, Fireblocks Trust Company, will offer cold-storage custody solutions for U.S. clients, subject to final regulatory approval. 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Fireblocks is proud to announce the launch of our Global Custodian Partner Program, the world’s first network designed to connect you with licensed digital asset custodians globally → <a href="https://t.co/DvHdbq5aoH" target="_blank">https://t.co/DvHdbq5aoH</a> In conjunction, we’re also announcing our intention to launch the… <a href="https://t.co/Oq5r6KXn3q" target="_blank">pic.twitter.com/Oq5r6KXn3q</a>— Fireblocks (@FireblocksHQ) <a href="https://twitter.com/FireblocksHQ/status/1788979944338358773?ref_src=twsrc%5Etfw" target="_blank" rel="noopener">May 10, 2024</a>
 </blockquote> 
 </div>
</figure> 
Fireblocks is also <a href="https://www.fireblocks.com/press/fireblocks-creates-worlds-first-licensed-custodian-partner-program-for-digital-assets/" target="_blank" rel="noreferrer noopener">establishing</a> the Global Custodian Partner Program, a network of licensed custodians that will utilize Fireblocks’ technology.&nbsp; Fireblocks plans to launch the new program this quarter with an initial group of companies based in the U.S., the United Arab Emirates, Britain, Singapore, Thailand and Australia. The firm is reportedly in discussions with multiple custodian providers in each of the mentioned jurisdictions. 
Clients will be able to use the Fireblocks infrastructure as a single point of access to licensed&nbsp; custodians as well as liquidity pools, exchanges, on/off ramps, and staking, among other services built on the Fireblocks Network. More custodians are expected to join the Program over the coming months.&nbsp; 
This move signifies a broader shift in crypto custody following the downfall of FTX. The collapse of the crypto exchange highlighted the importance of mitigating counterparty risk, leading institutions to embrace advancements in key-sharing technologies like multiparty computation (MPC), a technology championed by Fireblocks. 
As a result, there’s been a growing trend towards self-custody, alongside increased reliance on risk-reduction technologies like MPC. 
While Fireblocks has traditionally operated as a software vendor, they acknowledge the need for some clients to leverage custodial services due to regulatory or risk considerations. 
However, the firm maintains its commitment to self-custody innovation, as emphasized by Adam Levine, Fireblocks SVP of Partnerships.&nbsp; 
“We continue to believe everything we’ve said about the importance of holding your own assets and at no point are we walking that back,” Levine said in an interview. “But what’s becoming abundantly clear is that there’s a lack of qualified custodians in the United States that are able to focus on digital assets.” This development also carries political implications. Proposed changes to the custody rule by the Securities and Exchange Commission (SEC) in February 2023 could significantly restrict the types of institutions that registered investment advisors (RIAs) can entrust with their clients’ crypto assets.&nbsp; 
Part of a contentious and undecided set of modifications known as SAB 121, these proposals would potentially limit qualified custodians to registered broker-dealers and federally chartered banks, contradicting the existing state licensing system. 
<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow"> 
 Also Read: <a href="https://www.cryptotimes.io/2024/05/07/is-kraken-stopping-trading-services-in-new-york/" target="_blank" rel="noreferrer noopener">Kraken to stop trading services in New York?</a> 
</blockquote>

Fireblocks Plans For A New York-Regulated Trust Company

The Crypto Times

Other articles published on May 10, 2024

Ethereum’s Speculative Divergence: ETH Price Tightly Holds on to $3K Support Level

DoJ claims Tornado Cash indictment is not about ‘free speech’ | Protos

Cardano Analysis: A Unique Opportunity At Low Cost

Shiba Inu (SHIB) Key Dates Are May 11 and 12, Here's Why

Nexo Announces $12 Million Token Airdrop For Platform Users

Rober Kiyosaki Beli Ethereum saat Dolar Kian Lesu

Join our free newsletter for daily crypto updates!