TL;DR Breakdown:
- Bakkt has received a BitLicense from the New York Department of Financial Service.
- This is the 29th virtual currency license issued out in the whole of New York.
The New York state authorities have approved and certified Bakkt, an institutional-grade Bitcoin (BTC) custody company, as a virtual currency company operating within the jurisdiction. The New York Department of Financial Service (DFS) made this known on Thursday. The regulator granted the company a BitLicense, which is more like a regulatory permit for cryptocurrency-related businesses in New York.
BitLicense was instituted back in 2015. Crypto companies must meet certain requirements to get approved, which might take years. The license could also cost about $100,000 in legal fees.
Bakkt becomes a BitLicense-certified Bitcoin firm
This is reportedly the 29th time where a cryptocurrency company received the BitLicense from the state’s authority. This achievement should see the company expand its services and push towards its broader objective of making cryptocurrencies accessible in New York and beyond.
“This represents a major milestone to achieving our vision of making digital assets accessible to all, and we’re thrilled to continue driving innovation in this rapidly evolving industry, highlighted by the upcoming launch of the Bakkt App,” said Gavin Michael, the CEO of Bakkt.
Launched in September 2019, Bakkt focuses on providing institutional-grade custody service for the Bitcoin futures traded on ICE or the Intercontinental Exchange, which is the parent company. The Bitcoin futures on the platform are physically settled, unlike some other platforms where traders receive the equivalent fiat currency of Bitcoin.
Institutional Bitcoin service
Bakkt is one of the prominent cryptocurrency companies pushing towards mainstream adoption of cryptocurrencies by institutions. Last year, it partnered with Galaxy Digital, a digital asset investment company, to launch a Bitcoin trading and custody service targeted at asset managers and institutional players.
