US-based crypto exchange Coinbase gets greenlight for custodial business to deal with digital coins.
According to the report of the New York Department of Financial Services (NYDFS) made Tuesday, Coinbase was approved to set up Coinbase Custody Trust Company LLC. Moreover, Coinbase Trust is now allowed to offer storage services of bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP and Litecoin.
"We’re proud to announce that Coinbase Custody has obtained a license under New York State Banking Law to operate as an independent Qualified Custodian," posted the company in the social network.
It is worth mentioning that XRP is said to be supported by the new firm, though this coin has been expected for listing on Coinbase platform for a long period of time. However, neither exchange nor wallet officially supports XRP now.
The company COO Asiff Hirji is glad for such development stating:
"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."
With this license, Coinbase services are believed to get an important regulatory clarity that will allow the platform "to compliantly store more assets and add new features".
Coinbase is also waiting for the approval of its other products, including the broker-dealer license, alternative trading system and registered investment advisor license. The corresponding applications were submitted to the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).