New York State Department of Financial Services (DFS) has granted BitLicense to XRP II, LLC, a digital asset native to the Ripple Consensus Ledger.
According to the press release on Monday by the department, Maria T. Vullo, Acting Superintendent of Financial Services announced the approval of BitLicense to Ripple.
"DFS is pleased to continue to foster the growth of the New York virtual currency marketplace and industry through thoughtful and appropriate regulation,” Vullo said during the announcement.
DFS reviewed XRP II application which was applied in August 2015 by Ripple in order to engage in virtual currency activities. The scrutiny by DFS included the company’s anti-money laundering, capitalization, consumer protection, and cyber security standards among others.
With the BitLicense approval, the startup can begin operating immediately and is subject to ongoing supervision by DFS. The approval allows Ripple to sell and custody XRP.
Talking about getting the virtual currency license, CEO and co-founder of Ripple Chris Larsen said, “Earning the BitLicense is an incredible validation of the institutional use of digital assets by DFS, one of the most influential state regulator.” He added, “With the BitLicense in hand, we look forward to working with our New York bank customers seeking to use XRP for liquidity and cost savings.”
Founded in 2012, Ripple provides global financial settlement solutions to enable the world to exchange value giving rise to an Internet of Value (IoV).
DFS first granted its license in May 2015 to a New York virtual currency firm, itBit Trust Company. DFS has received 26 BitLicense applications and has approved four virtual currency firms for charters or licenses. Talking about the support DFS will provide in issuing license, Vullo said, “DFS will continue to progress on licensing virtual currency firms while acting in the best interests of New York consumers.”
