The New York State Department of Financial Services (DFS) announced that it has granted a charter under New York Banking Law to Bakkt Trust to operate as a limited liability trust company.
This is the first virtual currency trust company application approved under Superintendent of Financial Services Linda A. Lacewell.
“As the financial services industry rapidly evolves, DFS will be at the forefront of fostering a sound, regulatory environment that continues to uphold New York as the premier place to do business, while protecting consumers and markets,” Lacewell said Friday (Aug. 16) in a press release. “This approval demonstrates New York’s competitiveness as a hub of innovation and leadership in emerging technologies.”
Bakkt is now authorized to provide custody services for bitcoin along with the launch of physically delivered bitcoin futures contracts. Its bitcoin futures contracts will be listed for trading on Intercontinental Exchange (ICE) Futures US and cleared through ICE Clear US. Both entities are affiliates of Bakkt.
“With the comprehensive regulatory review and approval of Bakkt Trust Company complete, we are pleased to serve as a qualified custodian of bitcoin for physically delivered futures,” said Adam White, chief operating officer of Bakkt. “We appreciate the work that the DFS has undertaken to bring a standardized regulatory framework to digital assets, particularly in the area of secure custody. This now enables us to offer institutional-grade custody via the Bakkt Warehouse alongside the federally regulated Bakkttm Bitcoin Futures contracts.”
DFS became the first state or federal agency in the United States to supervise virtual currency n 2015 and has so far approved 22 charters or licenses for companies in the virtual currency marketplace.