Coinbase To Provide Custody Services In New York
Coinbase Custody Trust Company, an affiliated firm of the popular crypto platform, can now offer the custodial storage of cryptocurrency to residents of the New York state. The license was given by the local Department of Financial Services (DFS), as reported in the press release.
The firm will become a custodian for the major digital currencies, such as bitcoin, ether, Ethereum Classic, Ripple, and Litecoin. It is noted that the list of the financial services passed by the regulator is limited.
Maria Vullo, the Department’s Superintendent, claimed that New York remains the leader in the financial services market regulation and introduces innovations. Issuance of the license to Coinbase Custody proves once again that the state provides the best conditions for supervising the surging sphere of financial technology.
Coinbase, as the officially qualified custodian of digital currencies, will follow the strict regulatory standards and be overseen along with other, more solid financial institutions of the state, Asiff Hirji, the President and operating officer of the exchange, said. He added that the New York DFS has been supporting the rapid development of the crypto industry since 2014.
Earlier, the regulator issued two licenses to the trading platform — to work with virtual currency and to transmit money, which allowed the exchange to sell and store tokens.
Coinbase Custody was launched as a custody service in July 2018, primarily for institutional clients, which were given the opportunity to keep large volumes of digital funds. The service protects users' savings with a multi-signature and regular cold storage audits.
Previously, the regulator approved the Litecoin listing on the Winklevoss' exchange.