Only days ago, we were reporting on the acquisition of broker-dealer ‘Marpine Securities’, by TokenSoft. As a result, this move saw the creation of new arm of TokenSoft, known as ‘Global Markets’. One of the benefits of this acquisition was the ability to now refer third-party custody solutions to their customers.
As a result, this means that will have the choice of utilizing either TokenSoft, or Coinbase Custody as the custodian of their holdings. By providing this option, each company benefits from both the services and reputation of the other. TokenSoft instantly gains more clout, while Coinbase becomes more diverse.
Coinbase Custody first went live in July of 2018. By offering custodial services to institutional investors, Coinbase is directly addressing a commonly agreed upon weak-point in the industry.
In the time since the service went live, Coinbase has added various supported assets, in addition to gaining licensing from the State of New York.
As the name would suggest, the main purpose of this service is simple – to safeguard an investor’s holdings. Coinbase General Manager, Sam McIngvale, commented on integration with TokenSoft. He stated, “By working together, Coinbase and TokenSoft will help projects get to market faster while maintaining compliance. Right now, there’s too much friction and complexity in the token issuance process. We need to change that…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.”
TokenSoft Global Markets
TokenSoft Global Markets is a newly formed arm of TokenSoft. Technology provided by TokenSoft, will power this while acting as a broker-dealer.
Mason Borda, CEO of TokenSoft, commented on the integration of another custody solution. He stated, “In many instances, issuers are looking for someone to manage the security and compliance of custody for them. The current options aren’t fully integrated, use omnibus accounts, and don’t provide the level of data granularity necessary to meet the standards of top accounting firms…Additionally, 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.”
Functioning out of San Francisco, and founded in 2012, Coinbase is a titan in the world of blockchain. They are trailblazers, and set the standard on many services offered. Coinbase has grown into a company valued at over $8 billion.
Going beyond commenting on the Custody integration, specifically, Sam McIngvale touched on their view of TokenSoft. He offered high praise, stating, “The TokenSoft platform and its team have truly differentiated themselves with their attention to detail and commitment to compliance and security…We’re excited to work with our common clients to support the future of security token management.”