Anchorage Digital Receives BitLicense Approval from New York Regulators
Anchorage Digital, a prominent crypto custodian, has obtained a BitLicense for its subsidiary, Anchorage Digital NY, LLC, from the New York State Department of Financial Services (NYDFS) on November 16. This license enables the firm to provide regulated crypto services to institutional clients in New York by early 2025, joining a select group authorized to operate in regulated U.S. markets.
A Major Milestone for Anchorage Digital and Crypto Institutions
BitLicense, established in 2015, regulates crypto businesses in New York. Anchorage Digital's trading desk will facilitate smooth crypto trading for institutions by ensuring sufficient liquidity and offering cost-effective services, appealing to businesses and large investors.
We are excited to announce that the New York State Department of Financial Services (@NYDFS) has approved our subsidiary, Anchorage Digital NY, LLC, for a BitLicense.
The addition of BitLicense-regulated trading means Anchorage Digital can offer institutions in New York State (… pic.twitter.com/Ki7Ehn1F1I
— Anchorage Digital (@Anchorage) December 16, 2024
This development positions Anchorage Digital as a reliable entity within the evolving landscape of digital asset regulations. CEO Nathan McCauley highlighted the approval as a key milestone, emphasizing the importance of providing regulated and efficient crypto trading for New York clients as part of their commitment to building robust regulatory and technical infrastructure for institutions in crypto.
Institutional Interest in Crypto Continues to Surge
The BitLicense approval allows Anchorage Digital to collaborate with various institutions, including Registered Investment Advisors (RIAs) and large asset managers. As institutional interest in digital assets rises, firms seek platforms that ensure security, liquidity, and regulatory compliance. Notable companies like BlackRock Inc (NYSE: BLK), Fidelity Investments, and Goldman Sachs Group Inc (NYSE: GS) have expanded into crypto-related services, with BlackRock launching spot Bitcoin Exchange-Traded Funds (ETFs) in January 2024, attracting significant capital.
Fidelity also offers crypto custody services for institutional clients. As more institutions enter the crypto space, integration with mainstream financial markets increases. Anchorage Digital's expansion into Asia and now New York is part of strategic efforts to enhance its market position, which includes becoming the first U.S. federally chartered bank to support liquid staking for Liquid Collective’s Liquid Staked Ethereum (LsETH).
Furthermore, Anchorage has partnered with various firms to launch a new stablecoin network and collaborated with PayPal on a stablecoin rewards program, reinforcing its status as a leading player in the digital asset market.