Fireblocks Plans For A New York-Regulated Trust Company

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As a researcher with extensive experience in the crypto industry, I’m thrilled to see Fireblocks expanding its offerings by establishing a limited-purpose trust company and launching the Global Custodian Partner Program. These moves demonstrate a clear response to the recent market events and growing demand for trusted custody solutions for digital assets.

As a crypto investor, I’m always on the lookout for reliable and secure platforms to store my digital assets. Fireblocks, a trusted name in the cryptocurrency industry, aims to provide an additional layer of security by setting up a limited-purpose trust company under the regulatory oversight of the New York Department of Financial Services (NYDFS). This means that my crypto investments will be held in a trust, offering increased protection and peace of mind.

Fireblocks Trust Company, a fresh addition to the scene, intends to provide cold storage custody services for American clients once regulatory authorization is granted.

Fireblocks is thrilled to unveil the Global Custodian Partner Program, an innovative global network linking you with certified digital asset custodians around the world. Additionally, we’re planning to introduce:

(Or)

— Fireblocks (@FireblocksHQ) May 10, 2024

Fireblocks is expanding its offerings through the introduction of the Global Custodian Partner Program this quarter. This program represents a network of authorized custodians who will leverage Fireblocks’ advanced technology. The initial rollout includes custodians from the US, UAE, Britain, Singapore, Thailand, and Australia. Fireblocks is currently holding negotiations with various custodian providers in each jurisdiction.

Clients will have a unified entry point to Fireblocks’ infrastructure, granting access to accredited custodians, as well as liquidity sources like pools, exchanges, on- and off-ramps, and staking services – all part of the Fireblocks Network. Additional custodians are projected to sign up for the program in the upcoming months.

The collapse of FTX has underscored the significance of minimizing risk with crypto custody, prompting institutions to adopt innovative key-sharing solutions such as multiparty computation (MPC) championed by Fireblocks. This shift represents a broader trend in the crypto industry.

Due to recent developments, there has been a rising preference for individuals to take custody of their assets themselves. At the same time, there’s been an escalating usage of multi-party computation (MPC) and other risk-mitigation methods.

Fireblocks, who have historically functioned as a software provider, recognize that certain clients require custodial services to address regulatory or risk concerns.

Despite this, the company remains dedicated to advancing self-custody technology, a point underscored by Adam Levine, Fireblocks’ SVP of Partnerships.

As a researcher, I’ve been advocating for individuals to retain control over their own assets, and this stance hasn’t changed. However, it’s becoming increasingly evident that there’s a scarcity of skilled custodians in the US capable of managing digital assets effectively.

The controversial and unsettled SAB 121 modifications include proposals that could restrict the role of qualified custodians to registered broker-dealers and federally chartered banks, going against the current state-licensed system.

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2024-05-10 23:48