Fireblocks Trust partners with Galaxy and Bakkt to expand regulated crypto custody, securing $10 trillion in assets under NYDFS oversight.
Fireblocks Trust Company recently announced a key custody partnership with Galaxy, Bakkt, FalconX, and Castle Island. This collaboration is aimed at the enormous growth of regulated digital asset infrastructure. It is a clear call that traditional finance players are now moving in deep into the digital asset space. This is an important development for the maturity of the market.
SEC Clears Path for Crypto Custodians
Fireblocks Trust Company is a New York State-regulated custodian. It comes under the direct control of the NYDFS. The firm is rolling out a huge framework of custody. This framework is aimed at addressing the rising institutional needs for ETFs and digital asset treasuries (DATs) in particular. It also supports the launch of tokens for foundations and protocols.
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This regulated environment is vital to fiduciary responsibility. It provides the best protection of digital assets. Fireblocks Trust comes up with discrete asset segregation. This helps to increase the transparency of markets as well as to execute effective risk management. The company forms its infrastructure on the advanced cold storage technology of Fireblocks.
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The infrastructure is directly linked to a huge network of over 2,400 financial institutions. Andrew Taubman, Deputy Chief Operations Officer at Galaxy, said the partnership brings some important capabilities. He said this is in support of secure, compliant growth across digital asset markets. This gives a secure bridge between the legacy and the crypto world.
A major regulatory event helped pave this pathway for state trust companies. The SEC’s Division of Investment Management issued a no-action letter on September 30. This guidance clarified that the state-chartered trust companies can be a qualified custodian for crypto assets. The new clarity helps to reduce former legal friction. It goes a long way in validating the role of entities such as Fireblocks Trust.
Strong Controls and Transparency Attract Global Capital to Crypto Markets
The company uses the same trusted technology that currently secures over $10 trillion in digital assets, ensuring unmatched protection. This is 300 million wallets or more covered by this protection. This bank-grade strong infrastructure provides uncompromised security and control. Fireblocks Trust CEO Adam Levine said regulated custody is what has become the catalyst. He believes it will spur the next level of institutional adoption.
The platform provides an opportunity for clients to confidently manage institutional treasury. It also provides support for the various fund structures and staking for yield generation on a scale. Nicholas Baes, Chief Operating Officer of Bakkt, said Fireblocks Trust is a critical component. It brings a compliant foundation so as to protect their client assets. This is the technological level to support the changing market.
These regulatory advances and partnerships create a direct impact on the overall crypto ecosystem. It enables the adoption of digital assets by institutions with more certainty. The power for DATs and ETF issuers to get qualified custody is transformative.
Fireblocks Trust is contributing to building the bridge between traditional finance and crypto. The emphasis on sound controls will enhance systemic risk overall. This transparent path of regulations will definitely appeal to more global capital flow. This is a base step of long-term growth and stability.
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