- The regulator issued a license to Coinbase on October 23.
- Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Ethereum Classic (ETC) to be supported on Coinbase custody services.
The largest exchange by daily trading volume in the United States, Coinbase is delighted to have receive the go ahead to offer custody services for various digital services. The platform had sent an application to the New York State Department of Financial Services (NYDFS) seeking approval to work as “a limited purpose trust company.”
The regulator issued a license to Coinbase on October 23 which gives the company the mandate to offer custody services for most of the top six cryptocurrencies by market capitalization. Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin Cash (BCH) and Ethereum Classic (ETC).
The addition of Ripple to the list of supported assets comes as surprise to many cryptocurrency enthusiasts. This because regulators have not made up their minds if Ripple (XRP) should be considered as cryptocurrency that is decentralized or a security token. This could also mean than Coinbase exchange is laying the ground in preparing of the official listing of XRP.
In its new service, Coinbase will work as a bank for the above mentioned digital assets. Custodial services mean that the entity in charge has been allowed within the law to hold fund for customers. The launch of the custodial services at Coinbase in July 2018 opened the way for institutional investors to get involved with virtual assets. At the time Coinbase said:
“Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.”
The president and COO of Coinbase, Asiff Hirji was delighted with the news saying:
“Since 2014, the New York Department of Financial Services has proven itself to be a strong advocate in its support for the responsible growth of the cryptocurrency industry. The New York State Limited Purpose Trust charter, which now enables Coinbase Custody to act as a Qualified Custodian for crypto assets, builds on our unparalleled success as a crypto custodian while holding the company to the same exacting fiduciary standards and oversight of other, mature financial institutions operating in New York.”