On April 30, Coinbase Custody, which is a wholly owned subsidiary of the San Francisco-based Coinbase digital currency exchange, announced that, effective immediately, they would support what is known as the mainnet iteration of a digital token called KIN.
KIN was developed by a Canadian company called Kik Interactive, which is well-known for an app that they created called Kik Messenger. Originally, the KIN token functioned on top of both the Stellar and Ethereum networks, but it now utilizes its own blockchain, which itself is a fork of Stellar's blockchain.
In announcing the Coinbase Custody deal, Kik Interactive stated that those who hold KIN tokens will now be able to make use of Coinbase Custody's extensive services, which includes not only storage services but also insurance coverage. Coinbase also commented on the announcement, stating that they were excited to provide custodial services for new networks such as KIN.
On Nov. 16, 2017, Coinbase first announced plans to establish Coinbase Custody and its array of custodial services. The subsidiary actually launched a little more than a half-year later on July 2, 2018. The main objective of the subsidiary has always been to provide those holding digital assets with a robust set of security features. Coinbase has said that cryptocurrency security has been the "number one concern" of institutional investors who have been considering entering the market.
Coinbase Custody is regulated by the New York Department of Financial Services (NYDFS), and by meeting the high standards of the NYDFS, it is considered by the state a Qualified Custodian.
Since the beginning of the year, Coinbase Custody has further expanded the services it provides its customers. The company's custodial services are now directly connected to the exchange's over-the-counter trading desk. This was done so to allow users the ability to access offline funds much faster than they previously could. The subsidiary has also become involved in what is called staking. This uses proof-of-stake digital currency networks as a means of incentivizing user activity.