- Facebook and Coinbase have teamed up on a new project to build a digital wallet that allows customers to transmit money worldwide without incurring costs.
- For its Novi pilot, Facebook has chosen Coinbase as its custody partner.
- The New York Department of Financial Services regulates Coinbase Custody Trust Company.
For its Novi pilot, Facebook has chosen Coinbase as its custody partner. Novi is a new digital wallet that allows people to send and receive money internationally instantly, securely, and without fees.
Coinbase is assisting Novi in the test through Coinbase Custody, which uses our patented, fully segregated cold storage capability for storing private keys to keep customer assets safe.
Novi users who are interested in participating in the pilot can buy Pax Dollar (USDP) with their Novi account, which Novi will deposit with Coinbase Custody.
Novi users will then be able to send USDP to each other in real time.
Coinbase Custody Trust Business, a licenced custodian and a New York limited purpose trust company, will hold Novi users’ assets.
The New York Department of Financial Services regulates Coinbase Custody Trust Company, which is a fiduciary under New York state banking law.
Twitteratis showed mixed reactions on the news as some says that “Facebook can’t regulate cryptos”.
Politician David Gokhshtein wrote on Twitter that,
“I don’t like this but Coinbase gets the opportunity to get in front of millions if not billions of people on Facebook’s platform. Such is huge for the cryptos industry.”
Users of Novi can also take advantage of Coinbase Custody’s top insurance programme, which includes a $320 million business crime policy.
Coinbase Custody is a leading crypto-native platform and custodian, with $180 billion in crypto assets under management.
A user tweeted stats and figures about the Facebook wallet launch and made fun of Coinbase.
COINBASE SCALING OVER IT’S SECURED NETWORK
Meanwhile, Coinbase has gained substantial expertise in secure and scalable crypto infrastructure over the last nine years, which we first designed to support our own first-party applications.
It subsequently turned this infrastructure into a product, and is now offering secure infrastructure solutions to the rest of the market.
This comprises market and on-chain data analytics, multi-venue algorithmic trade execution, staking support, financing, defi access, and compliance.
After the Facebook partnership, Coinbase stock price jumped over 2 percent and Facebook stock price soars to 1.4 percent.
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