Strike, a Bitcoin-focused fintech company led by Jack Mallers, has received regulatory approval from the New York State Department of Financial Services (NYDFS) through a BitLicense and money transfer license, allowing it to expand its Bitcoin services to residents and businesses across the state.
Dual licensing is a major hurdle overcome by Strike, as New York maintains one of the most demanding frameworks for digital asset companies in the US.
According to Mallers, securing the BitLicense is an important step for Strike and opens the door to offering secure brokerage, deposits and payment services to clients in New York.
“With our BitLicense, we can now bring this mission to New York, the world’s financial center. We operate with the highest standards, providing brokerage, deposits and payments in an open money infrastructure built for the long term,” he said. “We look forward to serving New Yorkers with secure, open financial services and Bitcoin.”
Through the Strike platform, users can buy and sell Bitcoin, automate purchases, set target price orders, convert direct deposit salaries to Bitcoin, and pay bills using their Bitcoin holdings.
Client assets are held 1:1 and can be moved to cold storage at no additional charge, while the company remains subject to NYDFS oversight, including cybersecurity audits and examinations.
Strike’s entry into New York will intensify competition among licensed Bitcoin service providers operating in the state.
BitLicense has historically limited the number of crypto companies that can serve New York residents because of its strict requirements. Companies that have successfully obtained a license often cite it as a competitive advantage when working with regulated financial institutions.
A prominent Bitcoin advocate, Mallers also founded Twenty One Capital, a Bitcoin-focused investment firm modeled after the Strategy, to provide institutional exposure to Bitcoin through Nasdaq stocks.
Twenty One has more than 43,500 BTC worth about $3 billion and is now the third largest corporate holder of Bitcoin.
