Paxos Now Authorized By New York’s Department of Financial Services to Offer Bankchain Precious Metals Platform

Financial Services Superintendent Maria T. Vullo announced this week that the Department of Financial Services (DFS) has authorized Paxos Trust Company LLC, formerly known as itBit Trust Company, to offer a permissioned, blockchain-based post-trade platform settlement service called Bankchain, and has granted a virtual currency license to Genesis Global Trading, Inc.

According to the DFS, Paxos Trust Company, a subsidiary of Kabompo Holdings Ltd., currently offers the Bankchain Precious Metals post-trade platform settlement service, which facilitates settlement among buyers in the “Loco London” market of gold bullion physically held in vaults recognized by the London Bullion Market Association. As itBit, Paxos was the first virtual currency company to receive a charter from DFS. The company’s plans to expand its business to include other services besides the bitcoin exchange were included as part of its charter application. Speaking about the approval, Vullo stated:

“New York continues to lead the nation in regulating the growing fintech industry. These approvals demonstrate DFS’s commitment to protecting consumers and the virtual currency market while encouraging innovation, such as the expanded use of blockchain, and providing strong regulatory oversight to new and existing market participants.”

Charles Cascarilla, CEO of Paxos, then added:

“This is a very exciting approval and we thank the DFS and Superintendent Vullo.  We are focused on building the best infrastructure to enable a modern day settlement solution for the precious metals market that will unlock capital, mobilize assets and create value.”

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