Cryptocurrency custodian BitGo has hired Coinbase’s former chief compliance officer to lead its compliance and anti-money laundering (AML) programs.

Jeff Horowitz led Coinbase’s global compliance program before leaving in October. Prior to Coinbase he spent 12 years with Pershing, a clearinghouse owned by BNY Mellon. 

Horowitz was also co-chair of the Securities Industry and Financial Markets Association's AML Committee. He began his career as a regulator with the Federal Deposit Insurance Corporation (FDIC).

The hire comes as banks across the U.S. have received more regulatory clarity through several letters issued by the U.S. Office of the Comptroller of the Currency giving them the green light to custody crypto and conduct payments and other activities with stablecoins.

“Banks and institutional investors are looking for a regulated and independent custody solution provider to safely store their crypto,” Horowitz told CoinDesk in an email. “Bankers want to know that a crypto custodian is meeting the same standards of security and compliance that Banks and Trust Companies are subject to today.”

Late last month, the U.S. Treasury Department announced that BitGo had agreed to pay $93,830 to settle 183 “apparent violations” of multiple sanctions programs.