Anchorage Digital has secured a BitLicense in New York, enabling the company to serve institutions in the world’s financial capital. “Secure and cost-efficient trading” is set to be on offer from early next year, the company said in an announcement on Monday.
Companies have stated that acquiring a BitLicense is both time-consuming and expensive, with only a handful of firms receiving approval from regulators. New York residents and businesses that wish to buy and sell crypto can only transact with platforms that hold a BitLicense. Critics argue that this stifles innovation and disproportionately affects startups.
Anchorage Digital’s CEO and co-founder, Nathan McCauley, called this “a major step forward” for the company and pledged to continue working with the New York State Department of Financial Services (NYDFS). “Bringing regulated and efficient crypto trading to clients based in New York marks the latest step in our journey to build the best regulatory and technical stack for institutions in crypto,” he added.
All of this comes amid seemingly insatiable demand for Bitcoin, and exchange-traded funds tracking its spot price, from investment advisors and institutional asset managers.
Anchorage Digital states that it offers an agency trading desk aimed at this segment of the market, meaning NY-based institutions can access “safe, regulated crypto trading with competitive pricing.”
BitLicenses have also recently opened the door to other products. Ripple’s RLUSD stablecoin, which aims to challenge the likes of Tether and Circle by offering digital assets pegged on a 1:1 basis with the U.S. dollar, is going live today. RLUSD will be regulated by the NYDFS, effectively meaning it will now be subject to New York banking laws.
The anticipation surrounding the launch of this stablecoin has contributed to a surge in XRP, a token launched by the co-founders of Ripple Labs. At the time of writing, XRP is trading at $2.67, up 14% over the past 24 hours—continuing a rally that began after Donald Trump was re-elected president. His pro-crypto policies, including sweeping changes at the Securities and Exchange Commission, have been a point of focus in the ongoing legal battle between Ripple Labs and the SEC.
There is also growing hope that a more relaxed regulatory environment under the Trump administration could pave the way for ETFs that offer exposure to XRP.
Edited by Stacy Elliott.