CoinBase is aggressive. Hours after announcing their support for USDC, another ERC token like ZRX, news is The New York State Department of Financial Services (DFS) has allowed CoinBase Custody Trust Company LLC to operate a “limited purpose trust company”.
As a subsidiary of CoinBase who are the holders of two DFS licenses (Money Transmitter and Virtual Currency licenses) that give them the power to trade, transfer, receive and store different digital assets, the approval took the market by storm. With this, the CoinBase Custody Trust Company LLC will at any time offer custodial services for the six different cryptocurrencies—including XRP and those listed at the exchange including Litecoin and Ethereum Classic. However there is no mention of whether ZRX will be supported by CoinBase new custodial services.
While acknowledging the grant, Asiff Hirji, President and COO of CoinBase said:
“The New York Department of Financial Services has proven itself to be a strong advocate in its support for the responsible growth of the cryptocurrency industry. 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”
Judging by their recent acceleration of coin offering, CoinBase are changing their previous methodical and prudent approach. Though this may be in response to increasing competition and demands from their 5 million customers in the US alone, there recent activities is good for the market. Not only will it increase widespread adoption but by opening new channels of funding, the whole space benefits from deep liquidity and directly tempers the market making it even more attractive for institutional grade investors.
Institutional Involvement: CoinBase New York Offices
In August, Ethereum World News reported that CoinBase planned to more than double their New York office employees from 250 to 500. As CoinBase places themselves strategically to tap in institutional involvement as regulation thaws, the New York office is specifically set in place to cater and appeal to institution and high net worth crypto curious investors.
According to Adam White, there are many investors keen on entering the space. He said:
“When we saw the market begin to correct, which we all expected, institutions didn’t lose interest. It was exactly the opposite… They look at it as an opportunity to enter when things are not too frothy.”
Source: Ethereum World News
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