TokenSoft, a security token offering platform has joined hands with Coinbase to provide its clients with an alternative custody solution.
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. Notably, Coinbase Custody is part of Coinbase which has over 25 million global customers and is also ranked as the largest platform for cryptocurrency trading and related services in the US.
STO issuers will now have an option to choose between self-custody through its platform or third-party solutions, including Coinbase Custody. The option of Coinbase Custody will be made available through TokenSoft’s new regulated broker-dealer affiliate, TokenSoft Global Markets, which is registered under the Financial Industry Regulatory Authority (FINRA).
For clients that will choose Coinbase, the exchange will be handling custody, insurance and auditable control of their digital assets. On the other hand Tokensoft will manage their compliance, regulation, distribution and exchange relationships.
Comments from Management