The New York Digital Investment Group (NYDIG) has been Granted a BitLicense
Based on a recent report, the New York State Department of Financial Services(DFS) has granted a limited trust status to NYDIG Trust Company, and a BitLicense to NYDIG Execution. Both of these companies have been identified to be subsidiaries of The New York Digital Investment Group (NYDIG).
NYDIG is 14th Company to Receive the DFS BitLicense
Going by a recent report, it was announced that the NYDIG has now become the fourteenth company to receive the DFS BitLicense.
The Financial Services Superintendent, Maria T. Vullo, approved NYDIG Execution LLC’s application for a digital currency license. The DFS also granted permission to the NYDIG Trust Company LLC, so it can operate in the capacity of a limited purpose trust company.
Regarding the approval, Vullo stated that:
Today’s approval further demonstrates that operating within New York’srobust state regulatory system leads to a stronger fintech marketplace and promotes innovation and necessary compliance with effective risk-based controls.
Through its newly acquired approvals, the NYDIG can offer its numerous consumers different custody options. So whether a client is looking for a self-custody, contracting with NYDIG Execution or its other subsidiary, NYDIG Trust, for custody services, they will be served appropriately.
Regarding custodial services, consumers are allowed to contract with a third party provider.
Emphasizing that consumer’s protection is a priority, Vullo made sure to note that “strict regulatory measures would enable accountability and responsibility in the virtual currency industry”.
Cryptocurrency Custody is Allowed
The report from the New York DFS made it known that NYDIG is also allowed to offer cryptocurrency custody services for digital currencies. Top cryptos such as Ripple (XRP), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH) and Bitcoin (BTC) were mentioned in particular.
Robert Gutmann, CEO of NYDIG, has also commented regarding the new licenses. He stated that:
“NYDIG is committed to providing transparency, security, custodial and asset management services. Since its inception in 2011, the New York State DFS has granted fourteen BitLicences to digital currency companies. NYDIG is the fourteenth recipient of the DFS BitLicense.”
