Bakkt secures New York BitLicense ahead of app launch

Bakkt’s platform for trading bitcoin derivatives has received approval from the New York Department of Financial Services (NYDFS) — BitLicense — to operate with New York residents.

Supt. @LindaLacewell announces #NYDFS grants virtual currency and money transmitter licenses to @Bakkt. Read #pressrelease: https://t.co/kd8JrSob1b.

— NYDFS (@NYDFS) March 11, 2021

The license was granted to Bakkt Marketplace, LLC — a subsidiary of Bakkt Holdings, LLC. It allows the platform to offer residents of the state the purchase and sale of virtual currencies (cryptocurrencies — editor’s note). The regulator also issued the company a money transmitter license.

Bakkt became the 29th firm to receive a BitLicense since 2015. Regulation of the bitcoin industry in the state is considered among the strictest in the world.

In the near future, Bakkt Cash will launch, enabling users to pay with cryptocurrencies at numerous merchants, including Starbucks. More than 400,000 people have signed up for early access to the program.

Bakkt trades options, as well as physically settled and cash-settled bitcoin futures. The platform is part of the Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.

In the second quarter of 2021, the company planned to go public with a valuation of $2.1 billion via a reverse merger.

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