# NYDFS updates virtual-currency custody and insolvency guidance

> NYDFS superseded its 2023 custody guidance with more specific requirements for acceptable subcustodians, subcustody agreements, permissible use of customer assets, disclosure, and preservation of customers’ beneficial interests in insolvency.

- URL: https://riadefi.com/regulation/2025-09-30-nydfs-virtual-currency-custody-insolvency-guidance/
- Posture: Guidance
- Authorities: New York State Department of Financial Services
- Event date: 2025-09-30
- Version: 1, published 2026-08-07 (first published 2026-08-07)
- Advisor-relevant: yes

## What changed

NYDFS superseded its 2023 custody guidance with more specific requirements for acceptable subcustodians, subcustody agreements, permissible use of customer assets, disclosure, and preservation of customers’ beneficial interests in insolvency.

## Who it affects

- New York virtual-currency custodians, subcustodians, investment advisers, funds, and clients

## What is still open

- How DFS will apply the updated expectations to individual custody chains and insolvency structures

## What it means for an advisor

- Reassess segregation, title, rehypothecation, subcustodian eligibility, contracts, disclosures, books and records, and insolvency opinions.

## Sources

1. [NYDFS updates virtual-currency custody and insolvency guidance](https://www.dfs.ny.gov/industry-guidance/industry-letters/il20250930-updated-guidance-custodial-structures) · New York State Department of Financial Services · 2025-09-30


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Published by Ketju Research on RIADeFi (https://riadefi.com). Educational research for financial professionals; not investment, legal, tax, or compliance advice.