Strike’s parent firm has received a BitLicense from the New York Department of Financial Services (NYDFS), enabling it to offer crypto services in New York.
The parent firm of Strike, the Bitcoin-focused fintech founded by Jack Mallers, has been granted a BitLicense by the New York Department of Financial Services (NYDFS), according a list of approved entities from the regulator.
Strike’s parents company, Zap Solutions, Inc., received a Virtual Currency and Money Transmitter Licenses in February, per the NYDFS website.
This approval allows Strike to expand its operations into New York state, a key market for financial services. Strike is known for leveraging the Lightning Network for Bitcoin transactions.
New York’s BitLicense
New York’s digital asset licensing, generally referred to as the BitLicense, is well known in U.S. crypto regulatory history for having some of the most stringent requirements for approval. At the same time, New York is a highly sought after state for digital asset licensing, as it’s seen as a crucial step for companies aiming to establish a foothold in the U.S. financial landscape.
The regulatory framework was introduced by the NYDFS in 2015, and the first BitLicense was awarded to USDC issuer Circle in September of that year, followed by crypto exchange Gemini a month later.
Strike announced its Bitcoin-backed lending product last May, as The Defiant reported.
Mallers is also the co-founder of Twenty One, a Bitcoin digital asset treasury (DAT) company that launched last April with an initial stockpile of 42,000 BTC, worth about $3 billion at the time. As of today, it holds over 43,500 BTC, worht about $2.9 billion, making it the third-largest Bitcoin DAT company.
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Source: https://thedefiant.io/news/regulation/bitcoin-fintech-strike-receives-nydfs-bitlicense
