Anchorage, a cryptocurrency company, has been given a chatter to set up a subsidiary in South Dakota. The announcement of the subsidiary, Anchorage Trust Company, was made on July 16 on Twitter.
“We are excited to announce the founding of Anchorage Trust Company, a new Anchorage subsidiary headquartered in Sioux Falls, South Dakota. Investors now have the option of a Qualified Custodian that’s both more secure and more usable.”
While in the U.S. Banking Committee hearing, Mike Rounds, Senator of South Dakota, said that the subsidiary had received a trust company charter from the state’s Division of Banking on July 12. They were also allowed to practice fiduciary powers in accordance with the laws of the state.
It was agreed that the Division of Banking would monitor the finances, operations, and compliance of the subsidiary. In his speech during the hearing, Rounds challenged other governments:
“Our Division of Banking should serve as a model for how governments can study and learn about digital currencies, while at the same time allowing pioneering companies like Anchorage to innovate and try out new products and services. Congratulations to Anchorage, and welcome to South Dakota.”
The co-founder and CEO of Anchorage, Nathan McCauley also praised South Dakota in a statement saying that the state has struck the right balance between developing a robust regulatory regime and encouraging growth in the trust industry by using innovative trust laws.
South Dakota has maintained both its position as a leader in trust law in the U.S. and a destination for trust companies seeking the best trust and privacy laws for over a decade. It was the first state in the nation to introduce the ’Trust Task Force’ in 1997 that brought together trust industry representatives and regulators.
Consequently, it has become the home of over a hundred state-chartered companies, both private and public. Among the companies is BitGo, which received the charter in September 2018. It is the first qualified custodian purpose built for storing digital assets. Today, the state has over $3.1 trillion assets according to the FDCI. This figure is three times more than that of New York.
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