Coinbase Custody announced

A Digital Currency Custodian For Institutions announced by the US cryptocurrency exchange Coinbase 
17 November 2017   1068

Californian company Coinbase announced the launch of a new company, the main purpose of which will be to assist institutional investors in the safe storage of digital assets. The new company was named Coinbase Custody.

According to the CEO of Coinbase, over the past year, more than 100 hedge funds targeting digital currencies have been created, and even more traditional institutional investors are beginning to view digital assets as one of the options. In addition to traditional hedge funds, it also deals with family funds, capital saving funds and other types of conservation and asset growth.

By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.
 

Brian Armstrong

Co-founder and CEO, Coinbase 

According to Brian Armstrong, institutional clients require:

  • Strict financial controls (multiple signers, audit trails, limits, etc)
  • Dedicated account representatives and phone support
  • SLAs on funds transfers
  • A regulated digital currency custodian
  • Multi-user accounts with separate permissions
  • Support for a wide range of digital assets and currencies
  • Insurance (in some cases)
  • And high levels of cyber and physical security

Coinbase is well positioned to launch this product. We already store billions of dollars worth of digital assets on behalf of our customers. We serve thousands of institutions via our GDAX product, the leading digital currency exchange in the U.S. We’ve raised $216M from venture capital firms and financial institutions like the NYSE/ICE, USAA, BBVA, Westpac, and MUFG. And we have approximately 200 employees working across our three offices in New York, London, and San Francisco with deep industry knowledge. 
 

Brian Armstrong

Co-founder and CEO, Coinbase 

The statement notes that in the coming years Coinbase Custody will help significantly increase the flow of institutional money into digital currencies.

The product will be gradually introduced throughout 2018 and will be available only to investors willing to make a minimum purchase of $ 10 million.

BitPay to Receive New York's BitLicense

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers
17 July 2018   87

The well-known cryptocurrency processing service BitPay obtained a license to work with virtual currencies in the state of New York. Known also as BitLicense, this license is issued by the New York Department of Financial Services (NYDFS) and grants its holders the ability to conduct activities related to cryptocurrencies in the state.

NYDFS has carefully studied the company's application, including its policy on measures to combat money laundering, customer identification, fraud prevention, cybersecurity. The financial situation of the company was also thoroughly analyzed.

New York state has one of the strictest policies around businesses involved in cryptocurrency and working through the approval processes to obtain a License was important to BitPay. We believe this hard work will pay off as New York presents significant business opportunities for BitPay.
 

Stephen Pair

CEO, BitPay

Having received BitLicense, BitPay can now conduct business with New York-based companies and consumers: the first will be able to use the company's processing services to accept payments in Bitcoin and Bitcoin Cash, the latter will pay for various goods and services using these two BitPay supported cryptos.

Note that BitPay was only the eighth company that received BitLicense. Other license holders are Square, Xapo, Genesis Global Trading, bitFlyer USA, Coinbase, Ripple and Circle. In addition, special permissions for operations with crypto-currencies are exchanged by Gemini and itBit.