Today 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. Coinbase Custody will operate as a Limited Purpose Trust Company chartered by the New York Department of Financial Services (NYDFS).
Coinbase Custody is an institutional-grade service optimized for storing large amounts of cryptocurrency in a highly secure way. 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.
Coinbase Custody Trust Company will operate as a standalone, independently-capitalized business to Coinbase Inc. and will be held to the same compliance, security and capital requirements as traditional fiduciary custodial businesses like the DTC. This means customers can trust that the company has met the rigorous banking standards of NYDFS regarding capitalization, anti-money laundering procedures, confidentiality, security and storage. The trust charter also designates Coinbase Custody as a fiduciary under New York State Banking Law.
As crypto continues its maturation as an asset class and more eligible financial institutions and hedge funds enter the space, Coinbase is committed to delivering products and services that are tailored to their unique needs. Coinbase Custody delivers the trusted storage service that our clients require to fully immerse themselves in the potential that crypto assets provide. We look forward to delivering more assets and features over the coming months.
All assets trusted to Coinbase Custody are stored offline and protected by industry-leading security practices and insurance. For more information, visit https://custody.coinbase.com.
Coinbase Custody Receives Trust Charter From The New York Department of Financial Services was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.