FTX.US Becomes The Latest Crypto Exchange To Apply For A Banking Charter

Sam Bankman-Fried’s U.S. crypto exchange FTX subsidiary has applied for a New York trust charter (becoming a New York Limited Liability Trust Company) with the State Department of Financial Services (NYDFS).

FTX

If approved, the coveted license will allow FTX.US to offer its cryptocurrency trading services to New York-based clients. Additionally, a NY Trust charter allows a company to provide services in many other states without obtaining additional licenses.

To date, the state regulator has only approved a handful of companies engaged in cryptocurrency business activities, namely wallet and custodian exchanges BitGo, Gemini, and Coinbase, as well as the Paxos stablecoin issuer.

FTX.US will be on even stronger footing with its Qualified Provider designation under SEC requirements. Additionally, NY approval reduces reliance on third-party financial institutions and enables the exchange to provide custodial, custody and trustee services for digital assets, which are typically limited to banks or brokers. recorded.

With a banking charter, FTX.US can provide sub-custody services to any financial institution looking to secure large amounts of digital assets, such as holding assets for the primary custodian. However, a New York charter would place the exchange under increased regulatory scrutiny.

FTX.US was valued at $8 billion

The Stablecoin Circle issuer is also in talks with US regulators to become the fourth crypto-native company to obtain a federal trust charter through the Office of the Comptroller of the Currency (OCC).

FTX US made headlines last month when the exchange became an investor in New York-based IEX Group, the eighth-largest exchange operator in the world. The startup took a gamble and made a strategic investment in the “Flash Boys” exchange as it aims to leverage its expertise and infrastructure to establish a regulated market for buying, selling and trading securities. digital assets.

FTX.US, a subsidiary of cryptocurrency exchange FTX, saw its valuation soar to $8 billion after successfully closing a Series A funding worth $400 million. The parent company, FTX Trading, was recently valued at $32 billion.

The new capital injection followed FTX’s launch of a non-fungible market (NFT) exclusively for clients living in the United States. The platform allows users to mint, buy and sell NFTs – all traded between chains across the Ethereum and Solana blockchains.

FTX.US also acquired Ledger Holdings Inc., parent company of a CFTC-regulated digital currency options and futures exchange, which was later renamed FTX US Derivatives.

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FTX.US Becomes The Latest Crypto Exchange To Apply For A Banking Charter


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