Coinbase, one of the most influential cryptocurrency exchanges and wallet providers in the world, revealed that it will offer custodial support for Telegram’s upcoming crypto project. Telegram is an instant messaging app known for its encrypted and privacy-driven nature.
The piece of news was reported by Coinbase itself via a blog post in recent hours. In the text, the company made it known that Coinbase Custody, its digital assets custodian product designed for institutional clients, will be supporting the Telegram Open Network, or TON, and its associated coin, the token Gram (GRM) once it is up and running.
After its most recent announcement, Coinbase will now offer support for the secure storage of a trio of future tokens: the mentioned GRM, Sola (SOL) and Orchid (OXT) starting from the moment of the launch of each one. Included in the custodial support is offline storage and insurance benefits for GRM token holders, per the blog post.
The “Fastest Growing Crypto Custodian”
“Over the last year, our industry leading security combined with our native ability to support participation and OTC trading for assets held offline has led Coinbase Custody to become the world’s largest and fastest growing crypto-native custodian. As our client base has grown we’ve been busy adding new features and support for the assets that our clients need. The primary factor we consider when deciding which assets to support is clients demand — particularly around new network launches,” the exchange explained.
“Today, we’re announcing that Coinbase Custody intends to support the secure storage of GRM, SOL & OXT at each network’s respective launch,” the blog post read.
According to the exchange, its Custody department is considered a limited-purpose trust firm that is chartered and properly regulated by respective authorities, in this case the New York Department of Financial Services. As a result, it reunites all the requirements to be a qualified custodian, per the U.S. Investment Advisers Act of 1940.
It can be read in the blog post that “as more networks launch tokens, institutional investors face a critical challenge in finding ways to securely hold each new unique asset,” implying that support will be made available at the outset of a specific ecosystem’s launch.
Other Companies that Will Support the Asset
Coinbase Custody is not the first company and/or project that publicly announced its support for Telegram’s newest asset, as Anchor Labs’ digital asset custodian branches Anchorage Hold and Anchorage Trust Company already did it a few days ago, on October 8.
Those two companies, however, have not yet registered with the United States’ Securities and Exchange Commission (SEC,) and the support for the GRM token won’t be offered in the state of New York and its local clients, at least at first.
After weeks of speculation in the press and in the crypto community, it was revealed that the incredibly anticipated TON network will launch close to the end of the month. Telegram itself made the announcement on October 2nd.
The news clearly stated that investors will need to offer Telegram a public key created through specialized software in order to get their GRM tokens by October 16th.
Telegram has been very active lately: just a few days ago, in late September, it came up with a wallet for its upcoming token in the app’s alpha version for the iOS operating system.
By Andres Chavez
