New Relationship Provides Security Token Issuers Custody Solutions and Enables Convenient, Institutional Grade Secure Fund Management for Issuers
TokenSoft, Inc. (“TokenSoft”), the leading technology and security platform for companies seeking to use digital assets as a growth strategy, is proud to announce the native integration between its broker-dealer affiliate, TokenSoft Global Markets, and Coinbase Custody, a leading digital custody platform for institutional clients. TokenSoft Global Markets is an SEC-registered broker-dealer, powered by TokenSoft’s technology.
Clients of TokenSoft will have a choice of custody, whether self-custody through TokenSoft’s technology or leveraging third-party custody options, Coinbase Custody being one of those made available through TokenSoft Global Markets. Through Coinbase Custody, issuers will have access to institutional-grade security, and an intuitive and easy-to-use interface for storing, and receiving funds. Issuers, and importantly their accountants and auditors, will benefit from a native integration that uses blockchain technology to prevent commingling funds.
“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,” said Mason Borda, CEO of TokenSoft. “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.”
“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,” said Sam McIngvale, General Manager, Coinbase Custody. “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.”
“The TokenSoft platform and its team have truly differentiated themselves with their attention to detail and commitment to compliance and security,” said McIngvale. “We’re excited to work with our common clients to support the future of security token management.”
Most of TokenSoft’s clients will have access to Coinbase Custody services, which are typically reserved for financial institutions with over $10 million in assets, through a referral.
Coinbase Custody controls and safeguards digital assets and currencies under custody at all times while providing capabilities for multiple signers, audit trails, segregation of duties, whitelisting IPs, and the ability to set withdrawal limits.
Coinbase Custody operates as a trust company in New York State, providing important regulatory clarity that allows compliant storage of more assets and the ability to use more features like staking.
Coinbase Custody has a designated team of account representatives who provide phone support to assist clients in confirming funds transfers, and making changes to accounts.
Coinbase Custody enables users to adjust permissions to view accounts, create internal transfers, and perform withdrawals to specific users, ensuring your entire team can work together.
Coinbase Custody plans to offer support for all major digital assets, including Bitcoin, Ethereum, Litecoin, and more.
Coinbase Custody undergoes regular security audits by external firms to ensure client accounts are secure at all times.
You can find more information on Coinbase Custody here.