After undergoing vigorous tests from the New York Department of Financial Services (NYDFS) Coinbase Custody is now a chartered Limited Purpose Trust Company. Armed with the license, Coinbase Custody can now operate independently from Coinbase Inc. The latter got the charter from the NYDFS under the New York State Banking Law.
Coinbase Custody was a firm under the umbrella of Coinbase Inc which was providing optimized services for storing large amounts of cryptocurrency in a highly secure way. The digital assets are kept in cold storage to enhance security. Furthermore, Coinbase Custody is insured to cushion its clients from any losses. Through the charter, it is independent and can offer more services. Additionally, the license gives Coinbase Custody to legal papers to add new features like staking alongside various types of asset. Similarly as they work to put in place the framework to support assets, Coinbase Custody is also putting in place measures to support ERC20 Tokens.
Charter Helps Increase Customers Believe in Coinbase Custody
As stated earlier to get the license from NYDFS Coinbase Custody had to undergo a series of tests to ensure it complies with banking standards in place. In detail, the firm was taken through storage, security, confidentiality, anti-money laundering procedures, and capitalization tests to ascertain its level. In the end, Coinbase Custody was in the green. Through the trust charter, potential customers can trust Coinbase Custody and store assets at their firm. Moreover, Coinbase Custody books and security measures are audited by external firms to make its business more transparent to customers. Similarly, the trust charter elevates Coinbase Custody to the same level as traditional fiduciary business such as DTC.
As the crypto industry keeps growing at Coinbase, they are finding new ways of helping our clients harness the profits that come with virtual currency. Besides the above service, clients can also use SLAs a fund transfers feature. Similarly, we are working to introduce multi-user accounts on our platform, and as more opportunities open up, we will add more tailor-made unique features. Our services are open to all individuals who believe in Coinbase Custody. At the moment Coinbase Custody offers services to cryptocurrency exchanges, ICOs, hedge funds, and lastly institutions. But with the trust charter, we aim at widening our coverage and service more clients. Coinbase Custody is also working in collaboration with ETC firm a SEC registered broker-dealer. The former is also a FINRA member.