FTX US has applied for a trust charter with the New York Department of Financial Services to operate in New York and offer its products to residents.
- A trust charter from the New York Department of Financial Services allows digital asset companies to offer crypto trading and custody services in the Empire State. BitGo and Coinbase are among the companies that have received such a charter in the past.
- Fiduciary charters grant recipients fiduciary powers that allow them to manage their clients' assets and offer crypto-as-a-service products to other regulated financial institutions.
- The other path to regulatory approval in New York is to apply for a BitLicense. The BitLicense framework has drawn criticism for discouraging innovation due to its time-consuming and capital-intensive application and compliance measures.
- FTX announced its application with the appointment of Marissa MacDonald as chief compliance officer for FTX Trust Company. MacDonald previously held the same position at Fidelity Digital Assets.
- FTX US, the U.S.-based wing of Sam Bankman-Fried's crypto exchange, received $400 million in funding at an $8 billion valuation earlier this year. At the end of January, the exchange had more than 1.2 million users.