The New York-based cryptocurrency exchange itBit, previously limited to Bitcoin (BTC) trading, has received official approval from the New York State Department of Financial Services (NYDFS) to add support for four major digital assets: Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Stellar (XLM).
This regulatory green light marks a significant expansion for itBit, enabling the platform to offer trading and custodial services for these additional cryptocurrencies. The move reinforces its position as a trusted, regulated player in the U.S. digital asset landscape.
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A Regulated Path to Broader Market Access
As of June 14, itBit officially began offering trading and custody solutions for BCH, ETH, LTC, and XLM. This expansion follows a formal announcement shared with Cointelegraph, confirming that the NYDFS has authorized the inclusion of these assets on the platform.
With this update, itBit strengthens its role as a fully compliant financial institution under New York’s strict regulatory framework. Notably, itBit is recognized as the first trust company approved by NYDFS to provide both trading and custody services for digital assets. Additionally, it holds the distinction of being the first exchange approved by the Department of Financial Services (DFS) to list Stellar (XLM) in New York.
These milestones underscore the platform’s commitment to regulatory compliance while expanding access to a wider range of blockchain-based assets for institutional and retail investors alike.
Strategic Expansion Meets Growing Demand
The addition of Ethereum, Bitcoin Cash, Litecoin, and Stellar reflects a strategic response to increasing market demand for diversified crypto investment options. According to CoinMarketCap, itBit ranks as the 31st largest cryptocurrency exchange globally by 24-hour trading volume, with approximately $54.2 million in daily volume at the time of reporting.
Each newly listed asset brings unique value to the ecosystem:
- Ethereum (ETH): Powers decentralized applications and smart contracts, serving as the backbone of the DeFi and NFT revolutions.
- Bitcoin Cash (BCH): A scalable fork of Bitcoin designed for faster and cheaper peer-to-peer transactions.
- Litecoin (LTC): Often referred to as “digital silver” to Bitcoin’s “digital gold,” known for its fast block generation and low fees.
- Stellar (XLM): Focused on cross-border payments and financial inclusion, particularly for underserved markets.
By integrating these assets, itBit aims to create a more comprehensive investment environment for users seeking exposure to both established and innovative blockchain networks.
“The addition of these four digital assets represents an important milestone in building a broader platform for crypto investors,” said Charles Cascarilla, CEO of itBit.
“We are committed to supporting innovation and growth within this ecosystem. The DFS approval enables us to serve a wider range of digital assets with confidence and compliance.”
Regulatory Scrutiny and Industry Evolution
While this expansion signals progress, itBit has not been immune to regulatory scrutiny. In April, the exchange was among several platforms contacted as part of an investigation by the New York Attorney General’s Office into cryptocurrency trading practices. Additionally, due to its role in facilitating Bitcoin futures trading via CME Group, itBit became a subject of inquiry during the Commodity Futures Trading Commission (CFTC)’s broader review of crypto markets.
Despite these challenges, Cascarilla emphasized the importance of collaboration between regulators and industry participants:
“As technology drives market innovation and progress, regulation must also evolve. We support all efforts aimed at increasing market transparency and fostering alignment among exchanges, regulators, and stakeholders.”
This balanced perspective highlights a growing trend in the U.S. crypto space — one where compliance is no longer optional but a foundational element of long-term success.
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New York’s Ongoing Role in Crypto Regulation
The approval comes amid broader legislative activity in New York. In early June, the state’s Banking Committee voted in favor of a bill proposing the creation of a Digital Currency Working Group. This task force would study the impact of cryptocurrencies on New York City’s financial markets and recommend policy frameworks for responsible adoption.
Such initiatives reflect New York’s dual role as both a financial powerhouse and a regulatory pioneer. The state’s BitLicense framework remains one of the most influential regulatory models in the U.S., setting standards that other jurisdictions often emulate.
For exchanges like itBit, operating under this regime means higher barriers to entry — but also greater credibility and trust among users concerned about security and legitimacy.
Core Keywords Integration
Throughout this development, several key themes emerge that align with user search intent and industry trends:
- Cryptocurrency exchange
- NYDFS approval
- Bitcoin Cash
- Ethereum
- Litecoin
- Stellar
- Regulated crypto trading
- Digital asset custody
These terms naturally appear across discussions about compliance, market access, asset diversification, and institutional adoption — all central to understanding itBit’s strategic direction.
Frequently Asked Questions (FAQ)
Q: What cryptocurrencies does itBit now support?
A: itBit currently supports Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Stellar (XLM) for trading and custody services.
Q: Is itBit regulated in New York?
A: Yes, itBit is regulated by the New York State Department of Financial Services (NYDFS) and operates as a chartered trust company, making it one of the most compliant crypto exchanges in the U.S.
Q: Why is NYDFS approval important for crypto exchanges?
A: NYDFS approval signifies adherence to rigorous financial standards, including anti-money laundering (AML) protocols, consumer protection measures, and capital requirements — enhancing trust among users and institutions.
Q: Can international users trade on itBit?
A: While itBit primarily serves U.S.-based clients, eligibility depends on jurisdiction-specific regulations. Users should verify access based on their location.
Q: What makes itBit different from other U.S. exchanges?
A: As the first NYDFS-approved trust company offering crypto trading and custody, itBit combines banking-grade security with regulatory compliance, appealing especially to institutional investors.
Q: Does itBit offer OTC trading services?
A: Yes, itBit provides over-the-counter (OTC) trading and custodial solutions for all supported digital assets, catering to high-volume traders and institutional clients.
As the digital asset industry matures, platforms like itBit demonstrate that sustainable growth lies at the intersection of innovation and regulation. By expanding its offerings within a compliant framework, itBit not only meets investor demand but also sets a precedent for responsible expansion in one of the world’s most influential financial markets.
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