TokenSoft, a security token offering platform, has partnered with Coinbase to provide an alternative custody solution for clients.
The firm announced Thursday that STO issuers can now choose between self-custody through its platform or third-party solutions, including Coinbase Custody.
For clients choosing Coinbase, the exchange will handle custody, insurance and auditable control of their digital assets, while Tokensoft will manage compliance, regulation, distribution and exchange relationships.
Coinbase Custody will be made available through TokenSoft's new regulated broker-dealer affiliate, TokenSoft Global Markets, which is registered under the Financial Industry Regulatory Authority (FINRA).
"Reports are projecting the STO space to be worth many hundreds of millions of dollars over the next five years," Sam McIngvale, general manager at Coinbase Custody, told CoinDesk.
Coinbase launched Custody in May of this year, offering a crypto asset storage service for high net-worth investors or institutions with over $10 million in deposits. Coinbase Custody operates as a regulated trust company in New York State, offering compliant storage of digital assets.
Coinbase has also announced that it is expanding its coverage to six new European jurisdictions: Andorra, Gibraltar, Guernsey, Iceland, the Isle of Man and Lithuania.
Customers in those markets will have full access to Coinbase's retail service via its website and mobile apps for trading cryptocurrencies, the exchange said. It also plans to launch the Coinbase Pro and Prime services in those regions in the future.
Bank vault image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.