Score a big crypto win for the Big Apple.
New York regulators just approved Coinbase to offer custody services for crypto assets. The move is designed to provide a safe and secure home for the nascent asset class as well as address a major concern for potential investors – who holds the asset during trading and settlement.
The new custodial entity, dubbed Coinbase Custody Trust Company LLC, was announced in an official announcement on Oct 23, according to CoinTelegraph.
The New York State Department of Financial Services (DFS) has authorized Coinbase CTC to provide 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).
According to CoinTelegraph, Asiff Hirji, President and COO of Coinbase, stated that “since 2014, the New York Department of Financial Services has proven itself to be a strong advocate in its support for the responsible growth of the cryptocurrency industry.” Hirji further added:
“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.”
The custody service I reported to offer myriad security measurements and precautions including “on-chain segregation of crypto assets,” “offline, multi-sig and geographically distributed transaction protection” and “robust cold storage auditing and reporting.”