According to an X post on Monday, the cryptocurrency trading division of DRW Holdings, known as Cumberland, has been granted a Bitlicense by the New York State Department of Financial Services (NYDFS).
Cumberland Earns Bitlicense, Bolstering Institutional and OTC Crypto Services
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Cumberland DRW Secures Bitlicense
Cumberland, a trading desk that provides institutional over-the-counter (OTC) liquidity for numerous cryptocurrencies, now holds a Bitlicense. This business license for engaging in virtual currency activities is issued by the NYDFS. The license was first created by Benjamin Lawsky, who served as New York’s initial Superintendent of the DFS, in July 2014.
“We are pleased that the New York State Department of Financial Services has granted Cumberland New York a Bitlicense,” the company stated on Monday. “We are deeply committed to working with regulators to obtain proper, necessary licensing and ensuring our business is compliant and aligned with regulatory requirements.”
Cumberland added:
As one of the only principal trading firms to hold a Bitlicense, we look forward to strong trading relationships with institutional New York counterparties.
Cumberland DRW LLC operates as the cryptocurrency trading arm of DRW Holdings, a private trading company headquartered in Chicago. Initially, Cumberland concentrated on mining before expanding into trading and OTC services. In 2019, the firm introduced a single-dealer trading platform tailored for institutional investors.
By 2023, it had formed a partnership with the Canadian cryptocurrency exchange Bitbuy to supply liquidity in Canadian dollars. Cumberland competes with other service providers such as B2C2 and Wintermute.
What do you think about Cumberland’s announcment? Share your thoughts and opinions about this subject in the comments section below.
