Coinbase Custody Granted Approval for Cryptocurrency Custody Services in New York

Coinbase Custody Trust Company LLC Receives Green Light

On October 23, regulatory authorities in New York made it official: Coinbase Custody Trust Company LLC is in the game! Buckle up, crypto enthusiasts, as the New York State Department of Financial Services (DFS) has approved Coinbase’s wholly-owned subsidiary to roll out a limited array of custody services. This is a massive step for the crypto-native economy.

What Services Are Now Available?

So, what’s on the menu for this newly approved service? Coinbase Custody will be authorized to safely hold a variety of virtual currencies, including:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• Ripple (XRP)
• Litecoin (LTC)

Get ready to toss your hats in the air because everyone’s favorite cryptocurrency custodian is extending its reach!

The Corporate Take on the Approval

Asiff Hirji, President and COO of Coinbase, had a few thoughts to share on this exciting development. He expressed gratitude towards the New York Department of Financial Services for being a champion of responsible growth in the crypto sector. Hirji remarked,

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

Coinbase’s Custody Services: What’s Inside?

Coinbase Custody is not just another flashy crypto keyboard; it launched its services back in July, designed primarily for institutional clients. Think of it as a high-security vault for your digital treasures!

Here are some impressive security measures that will make even the most paranoid hodler feel secure:

1. On-chain segregation of crypto assets
2. Offline, multi-signature, and geographically dispersed transaction protections
3. Thorough cold storage auditing and reporting

Partnering with Established Financial Institutions

Adding to its credibility, Coinbase Custody collaborates with the SEC-registered broker-dealer and FINRA-member Electronic Transaction Clearing (ETC). This partnership opens up avenues for increased trust, while simultaneously promoting compliance with industry standards.

Future Plans: Adding More Ammo to the Arsenal

In August, Coinbase made a bold declaration—they plan to add 40 new assets to their custodian offering. Before you get too excited, note that these additional assets will be for storage only and will not be available for trading just yet. But hey, good things come to those who wait!

The Bottom Line

The green light from New York symbolizes more than just regulatory approval for Coinbase; it signals a promising future for crypto custodianship within the state—and possibly beyond. So, grab your digital currency and rest assured, your assets might just be the safest they’ve ever been!