Security token-oriented firm TokenSoft announced the integration of its broker-dealer with Coinbase Custody.
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Security token platform operator TokenSoft announced on Thursday the integration between its broker-dealer unit, TokeSoft Global Markets, and Coinbase Custody, a custody platform operated by the largest cryptocurrency exchange firm in the US.
TokenSoft Global Markets is a broker-dealer registered with the US Securities and Exchange Commission (SEC). In fact, TokenSoft acquired control over the new unit quite recently, after buying a major stake in an SEC-registered broker-dealer and rebranding it.
TokenSoft customers will now be able to choose from several custody options, whether it’s self-custody via TokenSoft’s platform or third-party services, which now include Coinbase Custody. If issuers go the latter route, they will benefit from institutional-grade security and user-friendly interface.
TokenSoft CEO Mason Borda explained:
“In many instances, issuers are looking for someone to manage the security and compliance of custody for them. The current options aren’t fully integrated, use omnibus accounts, and don’t provide the level of data granularity necessary to meet the standards of top accounting firms.”
“Additionally, Coinbase’s approval in one of the strictest jurisdictions, New York, gives everyone a lot of comfort. This new custody relationship will enable our issuers to simply work with one of the most well-known custody platforms in the industry, providing them with security, compliance and peace of mind,” he added.
Most of TokenSoft’s customers will be able to access the Coinbase Custody services via a referral. Interestingly, the custody solutions provided by Coinbase are generally available for institutions holding over $10 million in assets. Coinbase Custody services include several advantages, such as rigorous financial controls, account representatives and phone support, multi-user accounts with separate entries, multi-asset support (including Bitcoin, Ethereum, Litecoin, and more), and third-party audits. Besides, Coinbase Custody operates as a Limited Purpose Trust Company Chartered by the New York Department of Financial Services (NYDFS).
Sam McIngvale, general manager of Coinbase Custody, said:
“By working together, Coinbase and TokenSoft will help projects get to market faster while maintaining compliance. Right now, there’s too much friction and complexity in the token issuance process. We need to change that.”
SOURCE (https://cryptovest.com/news/tokensoft-integrates-its-broker-dealer-unit-with-coinbase-custody/)