Coinbase Lists USD Coin, Gets NYDFS Approval as Qualified Custodian
Coinbase started the week off with a bang, having announced a surprise listing of Circle’s USDC stablecoin and seeing the New York Department of Financial Services greenlight its bid to become an in-state Qualified Custodian of digital assets both on October 23rd.
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USDC Now Opened Up to Coinbase’s Customer Base
Coinbase’s growing stable of cryptocurrencies now includes its first dollar-pegged stablecoin, Circle’s recently launched USD Coin (USDC), an Ethereum token.
Coinbase is currently America’s most popular cryptocurrency exchange. Circle, which counts Goldman Sachs among its backers, is a peer-to-peer payments company that’s made a series of big splashes in 2018.
In the listing announcement, Coinbase emphasized the utility underpinning the USDC embrace, stressing that a “blockchain-based digital dollar like USDC is easier to program with, to send quickly, to use in dApps, and to store locally than traditional bank account-based dollars.”
Starting today, Coinbase customers in supported jurisdictions can buy, sell, send, and receive the USDC stablecoin. The advantage of a blockchain-based digital dollar is that it's easier to send, use in decentralized apps, and store locally. Get started: https://t.co/O6tgs8tMxz pic.twitter.com/NN2NLY4gwE
— Coinbase (@coinbase) October 23, 2018
Coinbase noted that the release would be available in “supported jurisdictions.”
Coinbase is supporting USDC
This is a BFD
This is going to be the onramp that enables millions of people to interact with dapps without taking on balance sheet risk.https://t.co/xCL7caf7af
— Kyle Samani (@KyleSamani) October 23, 2018
Notably, traders will now be able to have a fiat on-ramp to USDC via America’s most popular cryptocurrency exchange, a dynamic that should give more users than ever before an avenue for bypassing volatility in the cryptoeconomy.
Coinbase Custody Trust Gets NYDFS Approval
On the same day as the USDC listing, the NYDFS declared they had granted Coinbase’s bid to offer custody services in New York for the cryptocurrencies of bitcoin, ether, XRP, bitcoin cash, and litecoin.
The NYDFS is New York state’s leading financial regulator.
The charter approval greenlights the subsidiary Coinbase Custody Trust Company LLC for operations in a state that is among the foremost financial hubs of the United States.
Just in the past couple of weeks, we saw the approval of the following from NYDFS:
+ Approval of two stablecoins (Gemini Dollar & Paxos Standard)
+ Approval of Zcash trading and custody on Gemini
+ Approval of @coinbase Trust (today!)
The flippening, regulatory remix 👩🏻⚖️🚀 https://t.co/Ma9NAJueeU
— Katherine Wu (@katherineykwu) October 23, 2018
“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,” Coinbase chief operating officer Asiff Hirji said of the approval.
The development comes on the heels of several custody-related headlines popping off in the ecosystem as of late.
Last week, Galaxy Digital Ventures and Goldman Sachs invested millions of dollars into the Series B of digital assets custodian play BitGo.
To much ado, Wall Street titan Fidelity also announced its own cryptocurrency custody service earlier this month. At the time, Galaxy Digital founder Michael Novogratz said his crypto bank would be Fidelity’s “alpha crypto custody client.”
What’s your take? Is there no slowing Coinbase down now? Does it have any real challengers in the U.S.? Let us know what you think in the comments section below.
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