U.S based cryptocurrency derivatives provider, Seed CX, has finally landed the coveted New York Bitlicense, which allows the firm to offer its service to both retail and institutional clients.
New York Department of Financial Services (NYDFS) Superintendent Linda Lacewell announced the development today revealing that the licenses were granted to Seed Digital Commodities Market LLC (SCXM), and Zero Hash LLC two companies operating under Seed CX. Zero Hash also received approval as a money transmitting business.
As per the release, the license awarded to SCXM allows Seed CX to serve as a matching engine for buyers and sellers of cryptocurrencies like Bitcoin. The firm can now also offer block trades while at the same time provide their service to financial institutions using the money transmitter license granted to Zero Hash.
Seed CX CEO Edward Woodford shared his thoughts regarding the latest milestone for his firm, and how it could help their quest to expand their services to U.S institutional investors. He said in the release,
"As virtual currency license holders, we will be able to expand trading and settlement services to New York firms through our institutional platform that offers the strong institutional technology, the operational support, and the regulatory compliance that institutions demand.”
Meanwhile, the two licenses mean the NYDFS has now awarded twenty of such regulatory approvals to virtual currency operators in New York since the requirement was made compulsory for businesses in 2015.
For Seed CX, it marks another vital step in their move to launch a forwards trading product in the coming months.
We recently reported that ErisX and LedgerX, other derivatives providers planning to launch similar products (physical crypto futures derivatives) received approval from the U.S Commodity Futures Trading Commission (CFTC) last month.