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).

Related: Security Token Platform TokenSoft Invests in SEC Compliant Broker-Dealer

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

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.”
Found this article useful? Follow us on Twitter and like us on Facebook to get latest updates about security tokens straight in your pocket.