Update (October 9, 9:00 am UTC): This article has been updated to include additional comments from Adam Levine.
Fireblocks Trust Company, a New York State-regulated custodian under the Fireblocks platform, has partnered with Galaxy, Bakkt, FalconX and Castle Island to expand institutional-grade crypto custody.
Operating under New York Department of Financial Services (NYDFS) oversight, the company is rolling out a custody framework to meet soaring institutional demand for regulated digital asset infrastructure spanning ETFs, digital asset treasuries (DATs) and token launches, according to a Wednesday announcement.
“Regulatory compliance and security are non-negotiable,” said Matt Walsh, founding partner at Castle Island. “Fireblocks Trust Company delivers on both fronts with their qualified custodian status and robust operational controls,” Walsh added.
Fireblocks Trust Company’s infrastructure is built on Fireblocks’ cold storage technology and connects directly with a network of more than 2,400 financial institutions, according to the company.
“Fireblocks Trust is different because we are hyper-focused solely on custody and collateral management solutions, designed to bolster our clients’ businesses rather than compete with them,” Adam Levine, CEO of Fireblocks, told Cointelegraph.
Related: Binance taps Spain’s BBVA to offer safer crypto custody post-FTX: FT
Fireblocks targets key institutional use cases
The announcement came amid an institutional shift toward regulated crypto infrastructure, with demand rising across token launches, ETF issuance, collateralized lending and staking. Each of these areas depends on qualified custodianship, a gap that Fireblocks Trust Company is aiming to fill.
According to Levine, regulated custody has become the “catalyst” for institutional adoption of crypto. “By combining the protections they require with infrastructure they already trust, Fireblocks Trust Company is helping drive the next phase of institutional adoption,” Levine said.
Levine said that Bakkt, Castle Island, FalconX and Galaxy are actively using Fireblocks Trust Company for custody. “Beyond these, our coverage spans venture firms managing token generation events (TGEs), gaming companies, BTC lenders, and other organizations that need qualified custody for their digital asset operations,” he added.
In May, Fireblocks said it intended to “launch a limited-purpose trust company” under the regulation of the NYDFS, called Fireblocks Trust Company, to offer cold storage custody solutions to US clients. In August, the firm revealed it had been granted a New York state charter.
Related: US Federal Agencies Outline Key Risks for Banks Eyeing Crypto Custody
Banks push into crypto custody
In July, Deutsche Bank, Germany’s largest lender, unveiled plans to let clients store cryptocurrencies such as Bitcoin (BTC), with a full-scale digital asset custody service slated for launch in 2026 in partnership with Bitpanda’s technology unit.
A month later, reports surfaced that Citigroup was exploring crypto custody and payment services. In September, US Bancorp also relaunched its digital asset custody services aimed at institutional investment managers.
Magazine: Bitcoin’s long-term security budget problem: Impending crisis or FUD?
