Coinbase Lists USD Coin, Gets NYDFS Approval as Qualified Custodian

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. 

Also see: Circle CEO Urges Governments to Coordinate on Crypto Rules

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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.”

Coinbase noted that the release would be available in “supported jurisdictions.”

USDC marks the third cryptocurrency and the second ERC-20 token Coinbase has listed this year. The exchange listed 0x (ZRX) earlier this month and Ethereum Classic (ETC) back in August.

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.

“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.

Aye, aye captian: Coinbase Custody Trust gets NYDFS 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. 

Images via Pixabay

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