​According to a report from CoinDesk, Cumberland DRW, a leading digital asset trader and liquidity provider, announced on Monday that it has been granted a BitLicense by the New York State Department of Financial Services (NYDFS) for its New York-based entity.

In a post on its official X account, the company expressed its pleasure at receiving the BitLicense, stating, “We are pleased that the New York State Department of Financial Services has granted Cumberland New York a BitLicense.” The company also added that as one of the few principal trading firms to hold a BitLicense, it looks forward to establishing strong trading relationships with institutional New York counterparties.

The BitLicense is a regulatory framework put in place by New York in 2015 for businesses operating in the cryptocurrency space. While it was a pioneering effort to regulate the emerging industry on a state level, it has faced criticism from market participants for stifling innovation. Earlier this year, the state’s comptroller also raised concerns about the agency’s auditing process.

Cumberland is a subsidiary of DRW, a high-frequency trading company based in Chicago. In January, Cumberland was selected by Fidelity Investments to buy and sell bitcoin (BTC) for Fidelity’s spot bitcoin exchange-traded fund (ETF). This move further solidifies Cumberland’s position as a major player in the cryptocurrency market. 

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