US-based exchange Coinbase’s custody solutions have been granted approval from the New York State Department of Financial Services (DFS). Now, Coinbase has become a qualified custodian authorized to offer its custody solutions for “six of the largest virtual currencies: Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, XRP, and Litecoin.”
Coinbase becomes an independent qualified crypto custodian
According to the press release by the New York State Department of Financial Services (DFS), Coinbase Custody Trust Company LLC, a wholly-owned subsidiary of Coinbase Global Inc. to operate as a limited purpose trust company.
Maria T. Vullo, Financial Services Superintendent announced that the company is now being approved to offer secure custody services for “six of the largest virtual currencies: Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, XRP, and Litecoin.”
Superintendent Vullo shared:
“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.”
DFS has authorized Coinbase Custody Trust to operate as a custodian for these six virtual currencies that makes them a qualified custodian.
Coinbase also announced of this achievement stating, “operating under a New York State Trust Company is more than just a new license — it’s an important piece of regulatory clarity that will allow us to compliantly store more assets and add new features like staking.”
All the assets under Coinbase custody are stored offline and further protected by insurance and security practices. Coinbase further commented on this approval,
“As crypto continues its maturation as an asset class and more eligible financial institutions and hedge funds enter the space, Coinbase is committed to delivering products and services that are tailored to their unique needs. Coinbase Custody delivers the trusted storage service that our clients require to fully immerse themselves in the potential that crypto assets provide. We look forward to delivering more assets and features over the coming months.”
Coinbase has been granted approval for XRP cryptocurrency as well despite the fact that it is not listed on the exchange. Could it mean, XRP will be soon coming on Coinbase? Share your thoughts with us by commenting below!