TokenSoft Global Markets, the broker-dealer arm of TokenSoft, has partnered with Coinbase custody service which safeguards cryptocurrencies and digital tokens in a manner similar to traditional securities.
The partnership allows most of TokenSoft’s clients to access Coinbase Custody, which is typically taking on clients with a minimum of $10 million and charges a $100,000 setup fee and ten basis points in monthly fees. It also gives them the freedom to utilize TokenSoft’s self-custody or leverage third-party custody options, such as Coinbase Custody.
In simple terms, a custodian is a financial institution that holds assets, in both electronic and physical forms, on behalf of its clients to ensure that they are kept safe and secure. In the blockchain space, a custodian service does the same thing but exclusively for digital currencies and tokens.
Coinbase Custody is part of Coinbase which claims over 25 million global customers and also ranked as the largest platform for cryptocurrency trading and other related services in the US.
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Coinbase, however, is not the only company providing infrastructure and operational cryptocurrency custodianship for the wider investment management industry. SEC-regulated custodian Prime Trust, Japanese financial holdings company Nomura and most recently SIX Group, the owner of SIX Swiss Exchange, have all launched similar services for institutional investors.
TokenSoft Acquires Broker-Dealer
TokenSoft, which is a blockchain company specializing in security token issuances, announced last week it had acquired a stake in an SEC-regulated firm in a move that will clear the path for it to operate as a registered broker-dealer.
The acquisition puts the company on a firmer regulatory footing with the Securities and Exchange Commission and positions it to offer a broader range of blockchain-based securities. It also allows the platform to perform all operations in a regulatory compliant manner.
Mason Borda, CEO of TokenSoft, commented: “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.”
Sam McIngvale, General Manager of Coinbase Custody, added: “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.”