The New York State Department of Financial Services (DFS) has approved the request of Coinbase Custody Trust Company LLC, a wholly-owned subsidiary of Coinbase Global Inc., to operate as a trust company.
Coinbase had already obtained the Money Transmitter and Virtual Currency licenses from the DFS in January 2017. With the new approval, it will be able to launch Coinbase Trust to offer secure custody services for six of the largest virtual currencies: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP and Litecoin.
Thanks to this license, Coinbase will be authorized to store its customers’ crypto-assets safely and in full compliance with the rules. The service will be dedicated mainly to large institutional customers who need a safe and regulated custody service.
Coinbase President and COO Asiff Hirji said: “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”.
DFS Superintendent of Financial Services Maria T. Vullo added: “New York continues to be a leader in creating, fostering, and responsibly regulating a financial services marketplace that promotes innovation, safeguards the industry and protects consumers through strong supervision. Today’s approval further demonstrates that the state regulatory system is the best arena in which to responsibly supervise the growing fintech industry within a sound and compliant framework”.
To date, DFS has already approved eleven licenses for companies operating in the virtual currency market.