Coinbase, the largest platform for cryptocurrency trading and other related services in the US, has officially added Tezos (XTZ) token under supported assets for Coinbase Custody.
Despite being one of the coins to make the cut for custody services, XTZ has still not acquired a listing on the trading platform of Coinbase. Coinbase Custody is also exploring the addition of governance support for the Maker (MKR) protocol.
Coinbase was dogged by allegations of insider trading in late 2017 after it listed Bitcoin Cash, the Bitcoin fork. As such, the exchange is making listing announcements internally and to the public at the same time to remain transparent with its customers about support for future assets.
At the time of writing this article, there was already a strong increase in XTZ price following Coinbase news. The token rose nearly 20 percent during the day to hit its highest level since November 2018.
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The Tezos project and its founders are facing several class-action lawsuits in the United States. Plaintiffs accuse them of fraudulently marketing the sale of their tokens as charitable, non-refundable contributions in order to avoid governmental and private scrutiny.
More about Coinbase Custody
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. The service has also scaled to serve more than 60 clients and $600 million in assets under 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 service, which safeguards cryptocurrencies and digital tokens in a manner similar to traditional securities, has also partnered with several broker-dealers to provide its clients with access to its product, 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.