Now Coinbase will Legally Offer its Cryptocurrency Custody Services

By Chetna Phour

According to an official announcement, Coinbase, the leading digital currency exchange has got the approval from the Department of Financial Services (DFS) to offer its cryptocurrency custody services in the state.

The New York State Department of Financial Services authorized Coinbase Custody Trust Company LLC to provide a limited range of custody services for cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, and Ripple. These six cryptocurrencies will come under the ambit of the Coinbase Custody Trust Company program. Coinbase Custody Trust Company LLC is the wholly owned subsidiary of San Francisco based cryptocurrency exchange Coinbase.

The announcement was made by the Financial Service Superintendent, Maria T Vullo by stating that:

“New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision. Today’s approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound and compliant framework.”

After getting the approval, the President and Chief Operating Officer (COO) of Coinbase, Asiff Hirji said that the New York Department of Financial Services has once again proven that it is a strong advocate in support of the growth of the crypto industry. Asiff further added that:

“The New York State Limited Purpose Trust charter, which now enables Coinbase Custody to act as a Qualified Custodian for crypto assets, builds on our unparalleled success as a crypto custodian while holding the company to the same exacting fiduciary standards and oversight of other, mature financial institutions operating in New York.”

With the approval from DFS, Coinbase Trust Company became one of the eleven organisations to get the approval by the department. Coinbase Custody Trust Company was launched in July this year to target the institutional investors who can take part in the crypto world along with the retail investors. The company has features including multiple layers of security and on-chain segregation of crypto assets. In August, the crypto exchange announced that it is exploring 37 more cryptocurrencies to Crypto Custody so that the institutional investors can store a large number of cryptos in a secure way.