Cryptocurrency

New York: Coinbase Custody Gets approval From The Financial Services Department

In business for 6 years, Coinbase is one of the most influential crypto stock exchanges that would currently store more than $20 billion in digital assets on behalf of its clients. As a highly renowned crypto-company, it attracts potential investors and has recently created the subsidiary Custody Trust Company LLC to provide custody services to individuals.

Currently, this subsidiary has been approved by the NYDFS (New York Department of Financial Service) for this service and has also benefited from an extension for 6 cryptocurrencies.

Coinbase Custody can operate as a limited purpose trust company

The NYDFS has officially approved the Coinbase subsidiary’s custodian status to manage and store crypto-currencies. A special license has been granted for this purpose “under the banking laws of the State of New York”, which will, therefore, offer Coinbase Custody to operate as an independent qualified custodian, according to statements made by Sam Mcingvale, product manager of the subsidiary.

Not only has the subsidiary been approved as a secure storage service, but it has also obtained an extension to store other cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, and Litecoin. Coinbase Custody will now be able to attract potential crypto-investors via this multitude of platforms.

What does Coinbase Custody do?

This Coinbase subsidiary was designed to manage and store large volumes of cryptocurrencies (over $1 million) in a specific department. According to Mcingvale, Coinbase “explores a range of new assets”.

However, with the approval of the NYFDS, it will operate as “an independent, self-sustaining, independently owned business of Coinbase Inc. and will be subject to the same compliance, security and capital requirements as other custodial activities for all traditional trust transactions.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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