ErisX Gains BitLicense for New York Operation

Eris Clearing, the clearing and settlement arm of ErisX, has become the latest crypto company to receive a BitLicense from the New York Department of Financial Services (NYDFS), the company announced on Wednesday.

This has granted the cryptocurrency Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term to legally operate in the state of New York.

The company also obtained a Derivatives Clearing Organization (DCO) license from the Commodity Futures Trading Commission (CFTC) last year for its futures market and Clearing House Clearing House A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e A clearing house is defined as an intermediary between two parties, a buyer and seller, which helps facilitate the overall process from trade inception to settlement. Clearing houses streamline the exchange of payments, securities, or derivatives transactions.The clearing house is situated between two clearing firms who also helps reduce the risk of either member firm failing to honor their respective trade settlement obligations.Buyers and sellers enter into legally binding agreements for the e Read this Term.

With this, ErisX also highlighted that it has now obtained permission to offer its services to 47 states and jurisdictions in the United States.

Commenting on the development, Thomas Chippas, CEO of ErisX, said: “We are pleased that the NYDFS recognized our commitment to the high standards we borrowed from existing capital markets structures and applied to the cryptocurrency space.”

A bit about BitLicense

BitLicense is believed to be the toughest regulatory approval a crypto company can get in the United States. The harsh requirements of the licensing process also forced major crypto exchanges, including Kraken, to cease operation in New York.

After the license's introduction in 2015, New York's state regulator was very picky to hand it out in the initial years. Last year, however, as many as eight companies received the license.

With this latest approval, from the ErisX has joined Coinbase, Robinhood, and Tagomi for receiving the tough license.

“Our technology stack as well as regulatory framework, operations, and transparent marketplace are building blocks from the established commodity markets bringing familiarity, reliability, and conventionality to the crypto markets,” Chippas added.

Founded in 2018, ErisX is also well funded, raising $47.5 million to date from ventures arms of Fidelity and Nasdaq.