Regulated cryptocurrency exchange Itbit announced today that it has received approval from the New York State Department of Financial Services to add more cryptocurrencies to its product offerings. The company will begin offering custody, escrow, OTC trading, and exchange services for BCH, ETH, LTC, and XLM, in addition to its existing BTC offerings.
Approval by the NYDFS
Itbit announced on Thursday, June 14, that it will start offering several new products based on cryptocurrencies other than BTC. The New York-based company wrote:
Global crypto asset platform Itbit announced today it has received approval from the New York State Department of Financial Services (NYDFS) to offer expanded trading and custody services for bitcoin cash (BCH), ethereum (ETH), litecoin (LTC) and stellar lumens (XLM). Itbit will start immediately offering custody, escrow and OTC trading services for these new assets, with platform exchange trading to follow.
Previously only BTC products were available. Itbit COO Andrew Chang commented, “by gaining this regulatory approval, we are now able to open the doors for individuals and institutions to access crypto assets beyond just bitcoin.”
Itbit became the first bitcoin exchange to be granted a banking license by the NYDFS in May 2015. The license allows the exchange to operate in all 50 U.S. states under the New York banking laws, CEO Chad Cascarilla explained at the time.
Itbit’s Product Offerings
Itbit’s website outlines several services such as crypto exchange, OTC trading, and custody services. “US dollars are FDIC-insured and all fiat and bitcoin customer assets are fully protected and backed by mandatory capital reserves,” the company details. For OTC trading, the minimum investment is 25 BTC.
The exchange also offers escrow transactions. While “Itbit acts as the agent to negotiate a trade between two parties and conducts settlement” in OTC trading, it “acts as a neutral party to settle a trade brought forward by an agent or buyer/seller mandate” in escrow transactions.
At the end of May, Itbit’s operator, Paxos, announced that it had raised $65 million. Part of the funds raised will be used to operate the Itbit exchange and custodian service, CEO and co-founder Charles Cascarilla said at the time.
Last week, the U.S. Commodity Futures Trading Commission (CFTC) reportedly demanded trading data from Itbit and three other crypto exchanges since bitcoin futures provided by CME Group, which it regulates, derive their value from them.