Two Ocean No-Action Letter: Digital Asset Custody & Qualified Custodian Status

posted Oct 23, 2020, 2:56 PM by Dylan Smith   [ updated Oct 23, 2020, 2:57 PM ]
The Division issued a no-action letter to Two Ocean Trust, a Wyoming-chartered public trust company, located in Jackson, Wyoming. The letter, available below, states the Division's determination that Two Ocean may provide custodial services for digital assets under Wyoming law, including virtual currency and digital (tokenized) securities.

The letter also states the Division's opinion that Two Ocean is a "qualified custodian" under the Investment Advisers Act of 1940 and the SEC Custody Rule. This opinion is based on the Division's analysis that Two Ocean is exercising fiduciary services similar to national banks which involve the exercise of discretion, as required by the Advisers Act.

Two Ocean's no-action request letter is also available below.
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Dylan Smith,
Oct 26, 2020, 5:14 AM
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Dylan Smith,
Oct 23, 2020, 2:56 PM