Reports from reputed sources indicate that financial services behemoth Fidelity seeks license to operate its digital assets services in New York state. The corporation has reportedly set sight on establishing itself in the empire state soon.
If the firm’s application is seen through, it will be allowed to hold its crypto-custodial facilities in New York state, placing it on the same scene as other industry leaders such as Coinbase and Paxos.
Reports claim that Bakkt Bitcoin exchange, another leading brand in the business, is also pursuing a license in New York. The firm is one of the major competitors of Fidelity. Arthur Long, a leading lawyer, says that a trust license has far more significance than a simple ‘BitLicense’, given that it enables a much more expansive function in the financial arena.
Granted that Bakkt is seen to have waited quite a while for its approval, experts predict Fidelity might also have to settle in for a decent wait before it receives its license.
Arthur Long shed light on the intricacies of the process, highlighting the fact that the process could stretch well upto half a year. According to him, a firm that wants to secure approval as ‘Limited Purpose Trust Company’ would need to undergo a rigorous and extensive validation process.
The news has been well received by investors in the digital assets domain, although analysts note that retail investors would probably need to endure a long wait before they could reap the rewards of this new development.
While crypto investors have been receiving the news with excitement, it’s unlikely that services for retail investors will be made available any time soon.
Recent reports have also indicated that Fidelity’s ambitions were farther than this. The firm is reportedly looking to expand past the crypto-custodial space, and intends to provide trading facilities for its long time clients.