TokenSoft, the Security Token Offering (STO) tech platform, has entered a partnership with crypto exchange Coinbase, giving institutional users an alternative custody solution.
The native integration between TokenSoft’s broker-dealer affiliate, TokenSoft Global Markets, and Coinbase Custody, will give STO issuers the choice of using either the exchange’s own proprietary platform or a third-party custody solution.
Coinbase Custody provides institutional-grade security, an easy-to-use interface for storing and receiving funds, and uses blockchain technology to prevent commingling funds.
CEO of TokenSoft, 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.”
While General Manager of Coinbase Custody, Sam McIngvale, added:
“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,
“As a qualified custodian, Coinbase Custody provides asset issuers a strong foundation for their projects, offering institutional-grade security, financial controls and auditability. Paired with TokenSoft’s affiliated broker-dealer, TokenSoft Global Markets, Coinbase seeks to bridge the gap between a client’s vision and its ability to raise and securely store the funds during a security token sale.”
Coinbase Custody services are normally reserved for financial institutions with more than $10 million in assets.
In related news, a few days ago Coinbase announced it was now available in Andorra, Gibraltar, Guernsey, Iceland, the Isle of Man, and Lithuania.
The development is another sign that, despite the widespread negative press of recent months, the crypto market is rapidly maturing and attracting increasing amounts of institutional funds (see FIDELITY OFFERS INSTITUTIONAL INVESTORS CRYPTO SERVICES).
