The state Department of Financial Services recently granted a charter to Bakkt Trust Company LLC, authorizing the company to provide custody services for bitcoin in conjunction with the launch of physically delivered bitcoin futures contracts.

Bakkt will serve institutional customers; its bitcoin futures contracts will be listed for trading on Intercontinental Exchange Futures U.S. and cleared through ICE Clear U.S. Both entities are affiliates of Bakkt.

“As the financial services industry rapidly evolves, DFS will be at the forefront of fostering a sound, regulatory environment that continues to uphold New York as the premier place to do business, while protecting consumers and markets,” said DFS Superintendent Linda Lacewell. “This approval demonstrates New York’s competitiveness as a hub of innovation and leadership in emerging technologies.”

DFS became the first state or federal agency in the U.S. to supervise virtual currency with the proclamation of its regulation in 2015. To date, DFS has approved 22 charters or “BitLicenses” for companies in the virtual currency marketplace.

To learn more, visit the DFS website.