Coinbase Authorized to Create a Custodial Company in NY
The NYDFS announced that it has authorized Coinbase’ request to start a custodial company by the name of Coinbase Custody Trust Co. LLC in NY. The agency will offer custodial services for BTC, BTC cash, ETH, ETC, LTC, and XRP.
Currently, the only cryptocurrency from that list not yet available to users for trading on any Coinbase exchange platform is XRP. The president and Chief Operating Officer at Coinbase Asiff Hirji showed gratitude and exalted this move, as he emphasized how the NYDFS has always been a powerful advocate for the crypto industry’s competent growth.
Hirji also noted that the agreement from NY Limited Purpose Trust, which currently allows Coinbase Custody to be a certified custodian for cryptocurrency assets, improves upon Coinbase’s exceptional success in the market as a cryptocurrency custodian, while the company is held to similar trust standards and is overlooked by other mature financial organizations in NY.
Many other crypto startups have gained the approval to provide custodial services as well from the NYDFS, such as Northern Trust, BitGo, and Prime Trust, among other companies.
Coinbase has also been trying to get regulatory authorization for some other products too. Last June, there was an announcement from Coinbase sharing that it was after dealer/broker, ATS, and RIA licenses from SEC and FINRA.
If it acquires these licenses, the company will be approved to provide blockchain-powered security products.