CoinBase Gets The Go Ahead To Offer Custody Services From The New York Dept Of Financial Services

Some time ago, CoinBase, one of the most popular cryptocurrency exchanges in the world, announced that it would be offering custody services that will entice institutional investors. Yesterday, CoinBase got the approval it needed from the New York State Department of Financial Services to serve as a qualified custodian. The approval covers six of the major cryptocurrencies in the world: BTC, BCH, ETH, ETC, LTC and XRP.

The announcement was made in a press release by the DFS and it stated that Coinbase Custody Trust Company, a subsidiary of the cryptocurrency exchange, CoinBase, now has the right to operate as a limited purpose trust company. The company was granted approval to offer secure custody services for the cryptocurrencies listed above. The statement by Superintendent of the DFS, Maria T. Vullo was as follows:

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“New York is still the leading promoter of financial services. Within it, innovation is born. Granting Coinbase our approval goes further to show that our regulatory system is still the best in the United States. We are equipped to supervise the ever growing fintech industry within a compliant framework”.

Concerning the approval, CoinBase announced:

“Working under the name of a New York State Trust Company is amazing. It is more than a regulatory license. It is an important factor that gives regulatory clarity. This will allow us to add more features and store more assets within a compliant framework”.

CoinBase stores all its assets offline in a cold storage. This is done to ensure the safety of its clients assets. Apart from storing assets offline, CoinBase also offers insurance and other security measures. The announcement continues:

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“As the cryptocurrency industry continues to mature as an asset class and becomes more eligible within the financial space, institutional investors like hedge funds develop interest in the industry. These investors need custody services to protect their assets. At Coinbase, we are committed to delivering products and services tailored towards the needs of these investors. Our custody offers trusted storage packages that allows our clients to enjoy all the benefits of cryptocurrency assets. We hope to deliver more features and assets in the months and years to come”.

Is XRP Coming To CoinBase Soon?

XRP (XRP) Price Today – XRP / USD

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Name Price24H (%)
XRP (XRP)
$0.474576
-2.40%

CoinBase has received the approval for XRP but it is yet to list it on the exchange. What this means is still unclear. All this time, CoinBase has refrained from listing the XRP token. Some experts speculate that the reason for this is that XRP shares some qualities with security assets and CoinBase would rather not list the third largest cryptocurrency per market capitalization until there is more clarity on the issue.