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DFS Approves Coinbase to Provide Crypto Custody Services in New York

Redwan Eid | Oct. 24, 2018
DFS Approves Coinbase to Provide Crypto Custody Services in New York

October- 24, 2018 | AtoZ Markets

The New York State Department of Financial Services (DFS) have approved Coinbase Custody Trust Company LLC to provide cryptocurrency custody services in New York.

As per the official announcement published Oct. 23, platform is now allowed to offer a “limited range of custody services for virtual currencies, including Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP) and Litecoin (LTC)”.

In his turn, Asiff Hirji- President and COO of Coinbase, said that “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.”

Hirji added: “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.”

The Custodian Service Is Uses Solid Security Measures

Coinbase had started its custody services ‘Coinbase Custody’ in last July, with focus on institutional customers. The custody system was said to be optimised for storing large amounts of digital currency.

The company explained that its product utilizes a range of security measures, some of which are “on-chain segregation of crypto assets”, “offline, multi-sig and geographically distributed transaction protection” and “robust cold storage auditing and reporting.”

As per Coinbase, its custodian service uses systems provided by Electronic Transaction Clearing (ETC)- SEC-registered broker and a member of FINRA.

The media reported earlier in August, that Coinbase had announced plans to add 40 new assets to its custodian service. 

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.