Crypto exchange FTX US reportedly submitted an application for a trust charter with the New York Department of Financial Services (NYDFS) to function in the local area. 

Specifically, FTX US reportedly revealed its initiative to submit the application to establish a limited purpose trust company with New York’s financial services regulator, in a bid to roll out its products and services to local users. 

the licensed trust – currently seeking for regulatory review and greenlight – will reportedly be operated by Fidelity Investments veteran Marissa MacDonald, who will become the new chief compliance officer.

Crypto entities having plans to function in New York state have more than one option toward regulatory greenlight. One way is to submit an application for a trust charter, like how Coinbase and BitGo chose to do, for introducing crypto custody services. The other is to apply for a BitLicense, a method available since 2015.

Per the NYDFS, the primary goal of the BitLicense is that the people living in New York possess a “well-regulated way to access the virtual currency marketplace.”

Nonetheless, New York City Mayor Eric Adams criticized the initiative in April, believing that making it mandatory for crypto companies to submit applications for a license will lower the competitiveness the state possesses. 

In January this year, FTX US reportedly managed to hit the $8 billion benchmark in terms of valuation, after successfully obtaining $400 million of capital injection via fundraising.

FTX’s global exchange followed with its own $400 million raise later that month, raising its valuation to $32 billion.