Coinbase Custody has been approved to operate as an independent qualified custodian in New York. They have obtained a license under New York State Banking Law.
Coinbase Custody described as the ‘most secure crypto storage solution available’, Coinbase Custody has been launched so the company can earn revenue from being the custodian of its client’s assets, which institutional funds have to use by law.
For their customers that operate under a New York State Trust Company it is more than just a new license. It is an important piece of regulatory clarity that allows storing more assets.
Coinbase COO and president Asiff Hirji stated:
“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. We applaud the leadership Superintendent Vullo has shown to guide the responsible growth of the cryptocurrency ecosystem and look forward to working with their offices in the future”
Some other crypto startups such as BitGo, Northern Trust and Prime Trust, start gaining regulatory as well.
Coinbase has also been looking for regulatory approval for some other products such as a broker-dealer license, an alternative trading system license and a registered investment advisor license. At the time Hirji said that if the licenses get approved, it will be cleared to offer blockchain-based securities products.