The New York State Department of Financial Services has approved the application of NYDIG Execution, a subsidiary of NYDIG LLC, for a virtual currency licence and a money transmission licence. It has also authorised NYDIG Trust Company LLC, another subsidiary, to operate as a limited purpose trust company.

The NYDFS has authorized NYDIG to offer secure custody and trade execution services, providing consumers with the following options for the custody of their digital assets:

• to engage in 'self custody';
• to contract with a third party for custodial services; or
• to contract with NYDIG Execution or NYDIG Trust for custody services.

The regulator has authorised NYDIG to offer defined services to operate as a custodian for virtual currencies, including Bitcoin, Bitcoin Cash, Ether, XRP and Litecoin.

The regulator licenses technology-based money transmitters under New York’s money transmitter law; online lenders under its banking law; and virtual currency exchanges under its financial services law. To date, DFS has approved fourteen charters or licenses for companies in the virtual currency marketplace.