Second big news from the Coinbase camp of the day: they got approval from US authorities to operate a trust fund that will offer custodial services for 6 largest cryptocurrencies.
NY Department of Financial Services (DFS) has approved Coinbase’s application to start and operate a limited purpose trust company.
DFS has also approved Coinbase Trust to offer secure custody services for six of the largest virtual currencies: Bitcoin, Bitcoin Cash, Ethereum, Ether Classic, XRP and Litecoin.
“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,” said Superintendent Vullo. “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.”
“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. We applaud the leadership Superintendent Vullo has shown to guide the responsible growth of the cryptocurrency ecosystem and look forward to working with their offices in the future,”
Asiff Hirji, President and COO of Coinbase.
Additional information regarding DFS’s regulation of New York’s virtual currency marketplace can be found here.
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