FTX US Reveals New York Trust Charter Application
A trust charter from the New York State Department of Financial Services enables digital asset companies to offer crypto trading and custody services in the Empire State.
May 11, 2022 at 1:57 p.m. UTCUpdated May 11, 2023 at 6:50 p.m. UTC
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FTX US has applied for a trust charter with the New York financial services regulator as part of a push to allow it to operate in New York state and offer its products to local residents.
- Trust charters grant fiduciary powers to recipients enabling them to manage their clients' assets and offer crypto-as-a-service products to other regulated financial institutions.
- The other route to regulatory approval in New York is to apply for a BitLicense. The BitLicense framework has drawn criticism for being stifling to innovation for its time and capital-intensive application and compliance measures.
- FTX revealed its application by appointing Marissa MacDonald as chief compliance officer for the FTX Trust Company. MacDonald previously held the equivalent position at Fidelity Digital Assets.
- FTX US, the stateside wing of Sam Bankman-Fried's crypto exchange, raised $400 million in funding at an $8 billion valuation earlier this year. It had over 1.2 million users as of the end of January.
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Jamie Crawley is a CoinDesk news reporter based in London.