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Coinbase Goes Two for Two on Announcements
Yesterday, Coinbase made two announcements that only further the platform’s strength in the cryptocurrency industry.
- Coinbase received approval to launch custody services in New York
- Coinbase will list the USDC stablecoin after announcing a new joint venture with Circle
The two milestones are notable in Coinbase’s mission to help cryptocurrencies reach mass adoption.
Let’s start with Coinbase Custody
The big news for Coinbase’s custody service came after the New York State Department of Financial Services (NYDFS) announced that the startup is now a qualified custodian.
According to an official blog post, Coinbase Custody, a subsidiary of Coinbase, is now able to store Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, XRP, and Litecoin in its “institutional-grade” systems.
The NYDFS approval also brings hope that institutions will start trusting the cryptocurrency industry and more importantly, immerse themselves in the new asset class.
Now for CENTRE Consortium
In addition to the Coinbase Custody approval announcement, the company also announced a new joint venture with Circle that has resulted in a new asset listing.
The new asset, USD Coin (USDC), is a stablecoin that is backed 1:1 by U.S. dollars. According to the official blog post, USDC is already available on Coinbase.com and in the Coinbase IOS and Android apps, however, Coinbase Pro will list the asset “in the coming weeks.”
Coinbase believes USDC will help people take advantage of cryptocurrencies, but without the price fluctuations. As for the use cases, Coinbase explained that USDC could not only help improve transactions and ease the use of decentralized applications but also be flexible for developers.
Two pieces of the puzzle
Though these two announcements are notable, they are only pieces of Coinbase’s bigger plan to bring cryptocurrencies mainstream.
Recently, the platform has been working relentlessly to build out new products and services that will legitimize the crypto industry for institutions.
Now, as a qualified custodian, Coinbase may have reached a pivotal point in its journey.
Square is Open Sourcing its Bitcoin Cold Storage Solution
Safe custody for everyone
A security engineer at the payment company Square released a blog post, announcing that the company has open sourced the code, along with instructions, for its Bitcoin cold storage solution. The code and documentation can be found in the company’s Github repository here.
The technology is built in a similar manner to how the company secures other digital keys for its payment service. A solution the company refers to as “Subzero”.
Here’s a basic understanding of the tech
Square’s solution is known as “cold storage” because the device holding the keys has no connection to the internet. Funds can be sent to the wallet at any time. Moving funds out, however, is more difficult on purpose.
To move funds out of cold storage requires a multi-party signing ceremony. This means that multiple keys all need to permit the withdrawal of funds. In Square’s case, the company only allows funds to be transferred to Square owned wallets.
Square’s set up allows for multiple backups in multiple locations for another added level of dependability.
For the culture
Square’s move to open source its cold storage solution is great for the crypto-community. Crypto is all about decentralization. Sharing of knowledge promotes this value.
Custody has been a sort of weak spot for the space. Hopefully, with Square’s code, more companies will be more willing to adopt crypto, now that they have a safe method to store it.
SEC Commissioner Met with Bitcoin ETF Applicants Earlier This Month
A new report indicates that the new commissioner of the U.S. Securities and Exchange Commission (SEC) hosted a meeting with some of the Bitcoin ETF applicants earlier this month.
Commissioner Elad Roisman started his role with the SEC in September. During his second month in office, the Commissioner met with the recently denied Bitcoin ETF applicants.
The applicants that were present at this meeting include Dan Gallancy and Dimitri Nemirovsky at SolidX, Laura Morrison and Kyle Murray from the CBOE, and Adam Phillips from VanEck.
What went down
At the meeting, the applicants gave the Commissioner the same pitch that they presented to the last commissioner. In addition, they addressed the concerns that were given to them at the time of their denial.
The details we know so far are: if an ETF is approved, it will be 25 Bitcoin per share and the trust holding the Bitcoin will be insured against loss or theft.
Why not a Bitcoin ETF?
The main reason that the SEC has been so hesitant on approving a Bitcoin ETF is that it is an entirely new asset class. This entails some new hurdles that need to be solved to protect investors.
Many experts agree that a Bitcoin ETF is a matter of when not if. It is just about a company drafting a robust plan for the ETF to get approval from the SEC.