BitGo can now provide custody services for New York state clients.
The New York Department of Financial Services (NYDFS) issued the crypto services provider a New York Trust license, according to an announcement from the company released Thursday.
While BitGo was already a qualified custodian through the South Dakota Division of Banking, it now has the green light to offer its services to New York-based clients. This means meeting the state's high compliance standards, including know-your-customer controls, a SOC 2 Type 2 audit from an independent reviewer and insurance of up to $100 million in digital assets.
But New York is where the institutions are, and BitGo said the license is key to building its institutional client base.
"New York-based financial institutions are critical for the accelerated adoption and acceptance of digital assets and BitGo has received tremendous interest from institutional investors in the State for its products and services from banks, pension funds, hedge funds and other fiduciaries," said the announcement.
During the path to approval, BitGo hired former Coinbase chief compliance officer Jeff Horowitz at the start of 2021. It first applied for the license in August of 2020.
BitGo also recently partnered with KPMG and Coin Metrics to further institutional and bank adoption of crypto with a product suite to monitor blockchain network risks.