Cryptocurrencies are taking the world by storm. They were able to quickly explode in China and make a lot of witty businessmen rich within months. The Americans were closely examining this phenomenon and decided that they wanted a piece of the pie as well. That is why they had Coinbase, a digital currency exchange create a headquarters in San Francisco.
Recently the US has been looking more seriously at the whole blockchain ordeal and who else would be involved in it but Coinbase. According to reports, the company was able to receive an approval on their application to make its subsidiary Coinbase Global, Inc. operates as a limited purpose trust company.
New York is now the city that Coinbase will be heading to. With this economic powerhouse, they are looking at more brand recognition and an obvious increase in profits. The Financial Services Superintendent Maria Vullo has already announced that the New York State Department of Financial Services (DFS) will be taking the offer from Coinbase. Specifically, they will be provided with secure custody services for six of the most popular currencies on the market, through the subsidiary.
Money Transmitter and Virtual Currency licenses that were granted to the company by the DFS in January 2017 will also come into play for Bitcoin, Bitcoin Cash, XRP, Litecoin, Ethereum, and Ether Classic.
Coinbase past activities
Coinbase was able to satisfy institutional customers as well when it launched its custody service back in July 2018. The custody service is called “Coinbase Custody” and offers its customers quite a large number of security measures. With “Coinbase Custody” customers will be able to access on-chain segregation of crypto assets. One of the key features is that they will also be able to utilize it in an offline environment, for example, multi-sig and geographically distributed transaction protections. Thinking about US’s geopolitical situation they will most probably receive the best package there is. One of the main problems that institutions were facing was cold storage. Thankfully Coinbase managed to see it through and offer a new robust cold storage auditing and reporting.
In the words of Superintendent Vullo, New York has been the top player in implementing innovative systems in the financial services marketplace. They have also spearheaded the regulatory responsibility of their innovations in order to protect the industry which includes customer satisfaction through institutional supervision.