Coinbase Approved to Offer Crypto Custody Services

Coinbase has received approval from New York regulators to form a qualified custodial firm for cryptocurrencies.

Oct 23, 2018 at 7:39 p.m. UTC
Updated Sep 13, 2021 at 8:31 a.m. UTC

Coinbase has received approval from New York regulators to form a qualified custodial firm for cryptocurrencies.

The New York Department of Financial Services (NYDFS) said Tuesday that it granted Coinbase's application to create the Coinbase Custody Trust Company LLC, as well as approving the Coinbase Trust to offer custody services for bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin and XRP.

Notably, while Coinbase already allows customers to buy, sell or trade the first five of those cryptocurrencies, it does not currently offer XRP on any of its trading platforms.

In a statement, Coinbase COO and president Asiff Hirji praised the move, noting that the NYDFS has been "a strong advocate" for the "responsible growth of the cryptocurrency industry."

He added:

"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."

The news comes as a number of other cryptocurrency startups gain regulatory approval to offer custody services, including BitGo, Northern Trust and Prime Trust, among others.

Coinbase has been looking for regulatory approval for a number of other products as well. In June, the company announced it was seeking a broker-dealer license, an alternative trading system license and a registered investment advisor license through the U.S. Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Should the exchange receive approval for these licenses, it will be cleared to offer blockchain-based securities products, Hirji said at the time.

Editor's note: This article's headline has been updated to indicate the license applies to the majority of the U.S. states, rather than just New York.

Wall Street image via Shutterstock

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