New York state authorities have passed Coinbase Custody Trust Company LLC to start their cryptocurrency custody services in the district. The Department of Financial Services (DFS) has licensed Coinbase Custody Trust Company LLC to offer a limited range of custody services for virtual currencies including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP) and Litecoin (LTC).
Asiff Hirji, the president and COO of Coinbase, mentioned that the New York DFS has assisted for a responsible growth of the cryptocurrency industry since 2014. He added that the New York State Limited Purpose Trust charter not only qualified Coinbase Custody to perform as a Qualified Custodian for crypto assets but escalated the uncompatible success as a crypto custodian with the endeavour to hold the same fiduciary standards and oversight of other developed financial institutions in New York.
Coinbase began “Coinbase Custody” in July, putting emphasis on institutional customers and optimized to collect large amounts of digital currency. It is appeared to use several security means such as ‘on-chain segregation of crypto assets’, ‘offine, multi-sig and geographically distributed transaction protection’ and ‘robust cold storage auditing and reporting’.
Coinbase Custody applies systems from SEC-registered broker-dealer and FINRA-member Electronic Transaction Clearing (ETC). Moreover, Coinbase publicized to include 40 new assets to its custodian service in August. However, Coinbase does not consider for trading but focusing on the storage function.
Author: Jieun Lee