Curated News
By: NewsRamp Editorial Staff
April 03, 2026
North Capital Gains Trust Charter to Boost Digital Asset Custody Services
TLDR
- North Capital's new trust charter provides a competitive edge by expanding custody services for digital assets, meeting evolving market needs beyond traditional securities.
- North Capital Trust Company received a South Dakota public trust charter, enabling custody of digital asset securities through a regulated structure after six years of planning.
- This expansion helps investors securely manage retirement and investment accounts, supporting financial inclusion through improved access to digital asset custody services.
- North Capital's trust charter journey began six years ago after SEC/FINRA guidance, now positioning them at the forefront of digital asset custody innovation.
Impact - Why it Matters
This news matters because it highlights a key development in the financial technology sector, where regulatory compliance and asset custody are critical for investors and institutions. As digital assets like tokenized securities become more mainstream, the need for secure, qualified custodians grows, especially for retirement accounts and investment funds. North Capital's trust charter addresses past regulatory hurdles, such as those from the SEC and FINRA, offering enhanced flexibility in a rapidly changing market. For readers, this impacts investment security and access to innovative financial products, potentially influencing how assets are managed and protected in an increasingly digital world. It signals broader industry trends toward trust-based structures for asset custody, which could affect financial planning and regulatory standards.
Summary
North Capital Investment Technology, Inc., a financial technology company, has achieved a significant regulatory milestone with its subsidiary, North Capital Trust Company, receiving a Public Trust Company charter from the South Dakota Division of Banking. This development, announced on April 2, 2026, positions the company to expand its services beyond private securities into broader custody solutions for both tangible and digital assets, including tokenized securities. Key players include Grant Nelson, Managing Director and Head of Custody and Brokerage, who expressed excitement about enhancing client service, and CEO James P. Dowd, who highlighted the strategic importance of this move in navigating evolving regulatory landscapes. The company's expansion into trust services follows its earlier launch of North Capital Token Services, LLC, underscoring its commitment to the digital asset securities market.
The decision to form a trust company was influenced by regulatory challenges, particularly the 2020 Joint Staff Statement on Broker-Dealer Custody of Digital Asset Securities issued by the Securities and Exchange Commission and FINRA, which initially restricted broker-dealers like North Capital Private Securities Corporation from custodial roles for digital assets. Although this statement was withdrawn in 2025, North Capital believes the trust company structure offers greater flexibility to meet customer needs in a dynamic market. Investors and intermediaries rely on qualified custodians to fulfill statutory requirements for accounts such as IRAs and 401k plans, making this development crucial for compliance and service enhancement. The company emphasizes that no regulatory agency has endorsed its products, and services will be offered through separate affiliated entities subject to applicable laws and approvals.
For more information, visit North Capital's website or view the original release on www.newmediawire.com, which provides additional details on the company's brokerage and trust services. North Capital Trust Company operates as a South Dakota public non-depository trust company, not an FDIC-insured bank, and its parent company continues to provide technology solutions for the exempt securities market. This strategic move reflects North Capital's proactive approach to adapting to financial technology trends and regulatory shifts, aiming to better serve a diverse clientele in the evolving digital economy.
Source Statement
This curated news summary relied on content disributed by NewMediaWire. Read the original source here, North Capital Gains Trust Charter to Boost Digital Asset Custody Services
