Anchorage Digital, a crypto-friendly bank, has announced the receipt of BitLicense from the New York State Department of Financial Services for its subsidiary, Anchorage Digital NY, LLC. The approval allows the bank to offer secure and efficient crypto transactions to New York institutions by 2025. Nathan McCauley, CEO and Co-Founder of Anchorage Digital, commented on the development: Receiving a BitLicense is a major step forward for Anchorage Digital and the digital asset industry. Bringing regulated and efficient crypto trading to clients based in New York marks the latest in our journey to build the best regulatory and technical stack for institutions in crypto. ~Nathan McCauley BitLicense approval allows Anchorage to serve more institutional clients The Bitlicense will allow Anchorage to accommodate more institutions in New York. Institutions, including registered investment advisors (RIAs) and large institutional asset managers, will form part of the bank’s clientele. Furthermore, the approval allows Anchorage to offer regulated crypto trading to New York clients and custody and settlement of trades through their clear-cut custodian, Anchorage Digital Bank. Following the approval today, Anchorage boasts the only agency trading desk with a BitLicense from NYDFS. Through the desk, clients in New York can utilize deep liquidity and cost-effective trading from a regulated firm. Anchorage Digital has sustained growth in the crypto sector The NYDFS license comes just recently after the crypto-friendly bank secured a Major Payment Institution License from the Monetary Authority of Singapore (MAS). The license meant Anchorage Digital Singapore would offer complete, integrated solutions for custody, staking, trading, and settlement, including Fiat. Although things look progressive for Anchorage Digital, the firm is battling many challenges due to its association with cryptocurrency. Nathan McCauley, the co-founder and CEO of Anchorage Digital, stated that a partner bank they were working with called off their association in January 2023. The partner stated clearly that they were delinking due to Anchorage Digital’s involvement in crypto activities. Anchorage Digital operates under the supervision of the Office of the Comptroller of the Currency (OCC), and lately, it has experienced challenges in sustaining its operations. Its inclination towards crypto has seen it disqualified from participating in some banking activities despite being a federally chartered institution. Anchorage’s experiences are highlights of financial institutions working with cryptocurrency. To defend their space, they have to be cautious while aggressive. Traditional banks remain jittery about involving themselves in the crypto sphere. Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
