Bakkt, the cryptocurrency arm of Intercontinental Exchange (ICE), has gained the much sought BitLicense that will allow it to offer digital currency services in the state.
Announced by the New York State Department of Financial Services (DFS) on Thursday, the virtual currency and money transmitter licenses have been awarded to Bakkt Marketplace, a wholly-owned subsidiary of Bakkt Holdings.
Commenting on the development, Bakkt CEO Gavin Michael said: “We’re extremely proud to be awarded a BitLicense by the New York State Department of Financial Services.”
The Toughest Crypto License
BitLicense is considered to be one of the toughest crypto licenses that can be gained due to its high rejection rate. To date, the New York state regulator granted only 29 such licenses, and only companies holding this license can offer crypto services in the state.
Founded in 2018, Bakkt is one of the fastest-growing crypto companies. The company started by offering physically-settled crypto derivatives, and now, it is working to launch a crypto payments app.
“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,” Michael added.
The approval of the license came when Bakkt was planning to go public with a black-check acquisition company merger, which might put a $2 billion valuation on the company.
“With new technology advancing every day, DFS is proud to be at the forefront of financial innovation through our continuous efforts to set the conditions for virtual currency companies to germinate and grow,” said Superintendent Lacewell.
“This approval provides additional virtual currency options to New Yorkers as the state continues to rebuild and recover.”