The partnership will enable STO issuers to have an opportunity to choose between self-custody and third-party custody. Coinbase will provide control over digital assets through insurance, audits and custody for third party custody. TokenSoft’s role is to handle any issued related to compliance, regulation, distribution, and exchange relationships.
TokenSoft Global Markets, the new broker-dealer affiliate that remains fully regulated, will be the host of Coinbase Custody. The affiliate has already been registered with the Financial Industry Regulatory Authority (FINRA).
General Manager Sam McIngvale of Coinbase Custody said,
“Reports are projecting the STO space to be worth many hundreds of millions of dollars over the next five years. 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.”