Coinbase Custody has obtained a license under New York State Banking Law to operate as an independent Qualified Custodian.
It will operate as a Limited Purpose Trust Company chartered by the New York Department of Financial Services (NYDFS).
Coinbase Custody is designed as an institutional-grade service for storing large amounts of cryptocurrency in a secure manner. All assets trusted to Coinbase Custody are stored offline.
“For our customers, operating under a New York State Trust Company is more than just a new license – it’s an important piece of regulatory clarity that will allow us to compliantly store more assets and add new features like staking,” says Sam McIngvale, product lead at Coinbase, in an online post announcing the news.
Coinbase Custody Trust Company will operate as a standalone, independently capitalised business to Coinbase Inc, and will be held to the same compliance, security and capital requirements as traditional fiduciary custodial businesses like the Depository Trust Company.
“This means customers can trust that the company has met the rigorous banking standards of NYDFS regarding capitalisation, anti-money laundering procedures, confidentiality, security and storage. The trust charter also designates Coinbase Custody as a fiduciary under New York State Banking Law,” says McIngvale in the online post.