Seed CXannounced today that two of its subsidiaries, Seed Digital Commodities Market and Zero Hash, have received approval from the New York Department of Financial Services (NYDFS) for a virtual currency license. Seed CX, through its subsidiaries, offers a licensed exchange for institutional trading and settlement of fiat and digital asset products. Seed CX also plans to offer a market for CFTC-regulated digital asset derivatives.
Seed Digital Commodities Market and Zero Hash today received the 20th and 21st virtual currency licenses issued to date – signifying another landmark announcement for parent company Seed CX.
Last month, Seed CX was votedBest Institutional Digital Asset Infrastructure Providerby the 2019Profit & LossReaders Choice Awards. In addition, Zero Hash was named Innovator of the Year. Prior announcements this year includethreelandmarkpartnershipswith leading service providers in the digital asset space, including Caspian, the full-stack cryptocurrency asset management firm, Avelacom, the high-performance global connectivity and IT infrastructure provider, and Hydra X, the Singapore-headquartered financial technology company that operates the multi-asset and multi-venue trading platform Sigma.
The licenses will enable Seed Digital Commodities Market and Zero Hash to facilitate digital asset trading and settlement for New York trading groups. The company currently offers trading and settlement for BTC, ETH, LTC, BCH, and PAX, and has the capability to settle in 20 different fiat pairs. Seed Digital Commodities Market matches bids and offers in digital assets, whereas Zero Hash settles the transactions executed on Seed Digital Commodities Market and on other trading venues. Due to the bifurcation of the execution and settlement process, each entity requires its own virtual currency license.
The virtual currency licensing process involves undergoing a comprehensive review of anti-money laundering, fraud, capitalization, consumer protection, and cybersecurity policies. In addition to the virtual currency license, Zero Hash also simultaneously received a money transmitter license from NYDFS, permitting Zero Hash to custody and settle fiat currency.
“Being granted two virtual currency licenses by the New York Department of Financial Services marks the next step in our growth to becoming the leader in institutional trading of digital assets,” said Edward Woodford, co-founder and CEO of Seed CX. “As virtual currency license holders we will be able to expand trading and settlement services to New York firms through our institutional platform that offers the strong institutional technology, the operational support, and the regulatory compliance that institutions demand.”
Purpose-built for institutions, Seed CX provides institutional investors and professional traders with the market structure and technology they need to confidently add digital assets to their portfolios and investment strategies through excellence in trading, risk management and operations, and settlement and custody.
Seed CX and its subsidiaries now hold the following registrations and licenses: Swap Execution Facility (CFTC), Introducing Broker (NFA), Money Services Business (FinCEN), FX Dealer (FinCEN) and Money Transmitter (34 states), and has applied for Broker-Dealer registration with FINRA.
