NYDFS-regulated Fireblocks Trust Company has teamed up with Galaxy, Bakkt, FalconX, and Castle Island to launch a regulated custody service for ETFs, tokens, and crypto treasuries.
Fireblocks Trust Company ushers in a new era of institutional custody
Fireblocks Trust Company, regulated by the New York State Department of Financial Services (NYDFS), has announced a partnership with Galaxy, Bakkt, FalconX, and Castle Island to scale institutional custody for digital assets.
The goal is to meet the rapidly growing demand for regulated infrastructure for crypto funds, ETFs, digital treasury assets (DATs), and token lunches, the company said in a statement Wednesday.
“Regulatory compliance and security are not something to be compromised on,” said Matt Walsh, co-founder of Castle Island. “Fireblocks Trust Company delivers both through its qualified custodian status and robust operational controls.”
Fireblocks Trust Company’s Technology Foundation
The infrastructure is built on Fireblocks’ cold storage technology, which provides offline asset storage and direct connectivity to a network of over 2,400 financial institutions worldwide.
Fireblocks CEO Adam Levine noted that regulated custody has been a “catalyst for institutional adoption of crypto assets”:
“By combining the necessary security assurances with an infrastructure that financial institutions already trust, Fireblocks Trust Company is shaping the next phase of institutional integration of the crypto industry.”
Context: A Regulated Wave in Custody
Fireblocks announced the formation of a “limited trust company” in May, receiving a charter from New York State in August. This allowed it to officially offer custody services to clients in the US.
In parallel, other large banks are also moving in this direction:
- Deutsche Bank announced in July that it would launch a Bitcoin and crypto asset custody service by 2026 in partnership with Bitpanda Technology Solutions.
- Citigroup is considering launching crypto payments and custody services.
- US Bancorp relaunched its crypto custody service for institutional investors in September.
Institutional Wave and Building Trust
The launch of Fireblocks Trust Company comes amid growing interest from institutions in regulated access to crypto assets, especially after a wave of ETF applications in the US.
This is a step towards unifying security, transparency, and compliance standards that allow financial institutions to store, lend, stake, and issue tokens within a single regulated environment.
Related: Galaxy Digital buys up Solana for hundreds of millions