Coinbase Selected to Provide Custodial Service for FTX’s Exchange Token

By Anne W. | May 23, 2020
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Coinbase has reportedly been selected as the custodian feature provider for the exchange token of the crypto derivatives platform FTX (FTT), supported by Binance

Specifically, Coinbase Custody will reportedly offer primary custodial service for the  ERC-20 token, managing custody, compliance, and insurance for the FTT tokens.

Coinbase reportedly revealed that FTX is the firm’s biggest “exchange client to-date.”

The exchange further reportedly shared that crypto watchers may come across significant FTT transfers conducted on the blockchain, within the current and upcoming times, and also clearly stated that they will be “closely monitored migrations of $FTT onto Coinbase Custody’s secure, offline storage platform.”

The announcement surfaced not long after FTX released a US-based a spot exchange at the start of May, 2020. 

In an effort to support its US reach, FTX has finalized registration to be recognized as a money services business with the Financial Crimes Enforcement Network (FinCEN), and further looks to obtain numerous state-level money transmitter licenses. 

The exchange also disclosed its plan to acquire a BitLicense, to roll out support for traders located in New York. 

The exchange reportedly offers facilitating features for trades  between the U.S. dollar and Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Paxos Gold (PAXG), and Tether (USDT), with plans to facilitate more digital assets and fiat on-ramps are reportedly being developed.

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