Galaxy Digital Teams with Fireblocks Trust Company for Regulated Custody Options
Galaxy Digital has expanded its custody options by partnering with Fireblocks Trust Company, a regulated custodian that provides secure and compliant storage for digital assets. The move adds to Galaxy's toolkit for serving institutional investors who require safekeeping of their digital holdings.
The partnership allows Galaxy to offer its clients more options for structuring and securing their offerings, which include staking, yield management, and broader digital asset operations. Fireblocks uses multi-party computation (MPC) technology to secure digital assets, a method that splits private keys across multiple parties to prevent any single point of failure.
The SEC's evolving stance on qualified custodians for digital assets has created a scramble among institutional players to ensure their custody arrangements meet regulatory standards. An NYDFS charter is one of the more rigorous regulatory frameworks in US digital asset oversight, imposing strict capital requirements, cybersecurity standards, and compliance obligations.