Security Token Offering (STO) technology platform TokenSoft has inked a partnership with U.S. crypto exchange Coinbase to offer users an alternative custody solution.
According to the firm’s announcement on Thursday, STO issuers now have the option to choose either a third-party custody solution or the exchange’s proprietary custody platform, Coinbase Custody.
To those who opt for Coinbase, the storage of the users’ digital assets will be facilitated by the exchange, which provides insurance and auditable control of digital assets, while TokenSoft will oversee the custody solution’s regulatory compliance, distribution and exchange relationships.
As Coinbase Custody general manager Sam McIngvale indicated, “reports are projecting the STO space to be worth many hundreds of millions of dollars over the next five years,” adding that:
“When performed in a way that’s compliant with local law, these token offerings can help companies that are perhaps too mature for seed or crowd funding, but not quite ready to move into the VC world or look at an IPO, raise capital to get their projects moving. Working with Tokensoft it’s our goal to give these teams a one-stop-shop – from compliance to audits, to storage and distribution.”
Initially announced in November last year, Coinbase Custody provides digital asset custody for investors and institutions whose deposits amount to more than $10 million. Headquartered in New York, Coinbase Custody is a licensed trust company that offers regulatory-compliant digital assets storage.
In addition to launching a new custody solution alternative, Coinbase has also previously expanded its services across six European countries, including Guernsey, Iceland, Gibraltar, Lithuania, Andorra, and the Isle of Man.
As it stands, Coinbase now offers Europe-based customers full access to its suite of crypto-related services through the exchange’s website and mobile app. Furthermore, the exchange has also disclosed plans of rolling Coinbase Pro and Prime in Europe in the near future.