Bitcoin [BTC] wallet provider approved by New York Department of Financial Services

The New York Department of Financial Services approved Xapo, wallet storage provider and vault service provider, for a virtual currency license. Paxos Trust Company, the company behind itBit exchange, was also approved for a virtual currencies charter.

Xapo is a Bitcoin wallet solution that is said to be the “Fort Knox of Bitcoin wallets” by Wall Street Journal. It has an online wallet service complete with a mobile app offering, along with an ‘ultra-secure’ vault for the safety of investors’ Bitcoins. It raised $40 million in venture capital.

It has advisors on board such as Lawrence Summers, Secretary of Treasury under Bill Clinton, Dee Hock, the founder of Visa, and John Reed, the ex-CEO of Citibank.

Maria T. Vullo, the superintendent of NYDFS, stated that this is part of the larger objective to create a “thriving financial marketplace”. She said:

“Through strong and thoughtful regulatory oversight by DFS, consumers and the virtual currency market alike will continue to benefit.”

On the other hand, Paxos was authorized to trade in Ethereum [ETH], Litecoin [LTC], Bitcoin Cash [BCH], and Stellar Lumens [XLM]. The company recently raised $650 million at the end of last month. On the approval, Paxos CEO Charles Cascarilla said:

“We’re starting to gain a lot of momentum here. We just keep thinking about how we can add new product that will help our customers.”

The company will offer services of custody, escrow, and over the counter [OTC] trading services. Exchange trading on the itBit platform will occur later this year. Notably, the itBit exchange is the 3rd largest exchange in the United States, behind Kraken and Coinbase.

The other companies that were granted the permit are scant in number, as the NYDFS is selective in distributing them. Other companies include bitFlyer USA, a Bitcoin exchange, Coinbase, XRP II, a part of Ripple, Genesis Global Trading Inc., and Circle Internet Financial.

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