The state of New York has announced that they have given Coinbase Custody Trust Company LLC, which is a wholly owned subsidiary of the leading North American cryptocurrency exchange, approval to offer some custodial services in the state relating to the holding of digital currencies. The authorization by the New York State Department of Financial Services allows Coinbase to offer a restricted range of custodial services for the following cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Ripple and Litecoin. Asiff Hirji, who is both the President and Chief Operating Officer of Coinbase, issued a statement in response to the announcement. He said that the Department of Financial Services in the last 4 years has shown itself to be a strong proponent of the cryptocurrency industry, and that it has supported its responsible growth. Hirji went on to discuss the New York State Limited Purpose Trust charter, which is what is allowing Coinbase to provide custodial services for digital assets in the state. He said that the charter is giving Coinbase the ability to continue demonstrating that it can successfully provide cryptocurrency custodial services. At the same time, the charter is making sure that the company follows the same standards and receives the same oversight of more established financial institutions in the state. This past July, Coinbase began offering cryptocurrency custodial services through its subsidiary. The subsidiary focuses on institutional investors, and they have created a product that is optimized for the storage of large quantities of digital assets. The product also employs a wide range of security features. This includes on-chain segregation of digital assets, the utilization of various forms of industrial-strength transaction protection and the provision of sophisticated auditing and reporting of cold storage systems. In August, the company announced that it was adding around 40 new digital assets to its custodial offerings. These are "storage only" assets that cannot yet be traded. It has been reported that the Coinbase subsidiary employs systems provided by Electronic Transaction Clearing, which is a member of the Financial Industry Regulatory Authority and an SEC-registered broker-dealer.
Subscribe to Find the Best Cryptocurrencies & News - 99 Crypto
Get the latest posts delivered right to your inbox.