NY A09350

Creates a new regulatory framework for limited purpose trust companies in New York, requiring superintendent approval and authorization certificates before commencing operations.

Requires applicants to submit detailed business plans, financial projections, board member information subject to background checks, and management structure to the superintendent for review and approval.

Establishes operational requirements including internal audit plans, compliance with bank secrecy act, fraud prevention policies, and approval for new products or services (with automatic approval if superintendent does not respond within 180 days).

Permits limited purpose trust companies to issue stablecoins and asset-backed tokens backed by U.S. dollars, treasury securities, or other specified assets, with monthly audits and a 1.0 reserve ratio requirement.

Protects customer assets held in trust by limiting seizure during bankruptcy or receivership, allowing customers to remain recognized owners of deposited funds and assets.