May 4, 2021
DFS ANNOUNCES GRANT OF TRUST CHARTER TO STANDARD CUSTODY AND TRUST COMPANY TO ENGAGE IN NEW YORK’S GROWING VIRTUAL CURRENCY MARKET
The New York State Department of Financial Services announced today that the New York State Department of Financial Services (DFS) has granted a charter under New York Banking Law to Standard Custody & Trust Company, LLC (“Standard”) to operate as a limited liability trust company. With DFS approval, Standard is authorized to provide digital asset custody and other related services to New York customers, including DFS supervised entities authorized to engage in virtual currency activity.
Including the charter granted to Standard, to date DFS has approved 30 charters and licenses for companies engaged in virtual currency business activity.
“The approval of Standard Custody’s charter by the New York State Department of Financial Services is an important milestone for our company as we join a select group of firms in the industry,” said Standard Custody CEO Jack McDonald. “Our NY charter will enable us to help institutional clients take full advantage of the digital assets ecosystem in a highly secure, compliant and innovative way. Standard Custody’s proprietary blockchain technology and proven senior leadership team uniquely position us to be a leader in the industry.”
DFS began licensing firms engaged in virtual currency businesses activity in 2015 and under the leadership of Superintendent Lacewell, DFS has updated the Department’s regulatory approach to keep pace with changes in the market. This includes streamlining the process for companies to adopt new coins through a self-certification framework and a coins Greenlist, making use of the Department’s conditional licensing authority, and providing new clarity about DFS processes and expectations to applicants and licensed entities. These achievements are the result of close engagement with market participants and other stakeholders.
DFS also hosted and conducted its first-ever Techsprint to advance the Department’s regulator of the future vision. The Techsprint focused on Digital Regulatory Reporting for virtual currency companies due to their advanced digital capabilities operating in the space.
Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found on the DFS website.