Fidelity Digital Asset Services, LLC (FDAS) has procured a charter from the New York State Department of Financial Services (NYDFS) to operate a virtual currency custody and execution platform.

Per a Nov. 19 press release, the NYDFS authorized FDAS to operate as a limited liability trust company and run a cryptocurrency custody and execution platform where both institutional investors and individuals can store, buy, sell and transfer Bitcoin (BTC).

Superintendent of Financial Services Linda A. Lacewell noted that “this approval is further evidence that innovation and consumer protection can coexist in New York’s evolving and expanding financial services industry.” Commenting on the development, Michael O’Reilly, COO for Fidelity Digital Assets, said:

“The custody and trade execution services that we provide are essential building blocks for institutional investors’ continued adoption of digital assets. The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions and other market participants. We will continue to play a leading role in supporting the maturation of the entire ecosystem as we expand our business and the clients we serve.”

Fidelity’s developments in crypto custody service

Earlier in November, Fidelity Investments, which stands behind FDAS, hired Michael Zinaman as its product specialist to further oversee the company’s strategy on cryptocurrencies, custody and execution services. Zinaman oversees the company’s strategy for its cryptocurrency custody service that launched in mid-October.

At the time, the company’s CEO Abigail Johnson said that the company had fully launched its crypto custody business following a year of preparation and accumulating clients.

Recently, institutional Bitcoin trading platform Bakkt received regulatory approval from NYDFS to offer custody services to any institution. Previously, the option was only available for those trading its Bitcoin futures.