Under the umbrella of New York Digital Investment Group LLC, New York Digital Investment Group Trust Company LLC is now a licensed limited purpose trust company. The latter is a subsidiary of the NYDIG Company. Its application was scrutinized by the New York State Department of Financial Services (DFS) which is mandated to issue licenses to exchanges under its purview. Superintendent Maria T. Vullo is the head of DFS at the moment.
Armed with a money transmission and virtual currency license NYDIG Trust Company LLC can now offer several services to crypto users. In detail, NYDIG has the power now to provide trade execution and secure custody services to consumers. In summary, NYDIG can provide its consumers with the following services contracting with NYGIG Trust or NYGIG Execution for custody services, contracting with third-party for custodial services and engaging in self-custody. Through the license, NYDIG can provide custodian services for cryptocurrencies such as Litecoin (LT), Ripple (XRP), Ether (ETH), Bitcoin Cash (BCH), Bitcoin (BTC) to mention but a few.
While expressing his opinion about the new license Robert Gutmann, New York Digital Investment Group CEO had this to say;
“We want to say our gratitude to the NYDFS for putting place a good legal framework to the ever-growing digital asset ecosystem. The laws are not only clear but also comprehensive for users, investors and providers. At NYGIG we are pleased to receive the license and are looking forward to providing secure and transparent asset management and custodial services to the institutional market.”
On the other hand, the superintendent said
“Today’s license approval showcases the legal mandate granted to DFS for the implementation of a stronger regulatory framework whose primary role is to promote responsible growth of the industry. Furthermore, it also demonstrates that operating under New York’s robust state regulatory system promotes innovation and necessary compliance with effective risk-based control. Similarly, it leads to a stronger fintech marketplace.”
Since the virtual currency market came up, DFS has only approved fourteen licenses for different exchanges. Besides issuing exchanges with licenses, DFS is also responsible for companies which operate under online lenders under New York’s banking law and technology-based money transmitters under New York’s money transmitter law. Apart from approving license applications, DFS is also responsible for protecting consumers. The license issued to crypto exchange is also known as a BitLicense.