North Capital Investment Technology, Inc., a financial technology company providing technology solutions to private securities issuers, intermediaries, and investors, today announced that its wholly owned subsidiary, North Capital Trust Company, has received from the South Dakota Division of Banking a Charter and Certificate of Authority to transact business as a Public Trust Company.
“We are excited to receive our Public Trust Company charter, which positions us to better serve our custody clients and expand our scope of services beyond private securities,” said Grant Nelson, Managing Director and Head of Custody and Brokerage at North Capital. “We look forward to commencing Trust Company operations over the next few months.” Trust companies have emerged as a preferred vehicle for supporting the custody of tangible and digital assets, including tokenized securities. North Capital has been expanding the scope of its activities in digital asset securities, launching North Capital Token Services, LLC earlier this year.
“We began to explore the feasibility of forming a trust company about six years ago, when the Securities and Exchange Commission and FINRA issued the Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities,” said James P. Dowd, CEO of North Capital. Under the terms of the Joint Statement, which was withdrawn by the SEC and FINRA last year, clearing and carrying broker-dealers were practically prohibited from serving as a custodian for digital asset securities. The Firm’s custodial broker-dealer, North Capital Private Securities Corporation, had previously received approval as a clearing and carrying firm in 2016, so the Joint Statement was a setback for the Firm’s digital strategy. Investors and registered intermediaries rely upon qualified custodians to fulfill statutory requirements applicable to registered investment advisors, registered funds, and qualified accounts such as IRAs, ROTH IRAs, HSAs, and 401k Plans.
“Although broker-dealers are no longer precluded from holding digital asset securities on behalf of their customers, we believe that North Capital Trust Company will provide flexibility to more fully meet the evolving needs of our customers in a rapidly changing market environment,” said Dowd.
For more information about North Capital, visit https://www.northcapital.com.
