Coinbase Custody has been selected by the Binance-backed derivatives exchange FTX to store and insure its exchange token, FTT.
Coinbase has announced that it will provide custody services for the exchange token of the Binance-backed crypto derivatives platform FTX (FTT) on May 22.
Coinbase Custody will comprise the primary custodian for the ERC-20 token, managing custody, compliance, and insurance for the FTT tokens.
Coinbase stated that FTX is its “largest exchange client to-date.”
The exchange noted that crypto watchers may notice large FTT transfers taking on the blockchain over recent and coming days, clarifying that they will be “closely monitored migrations of $FTT onto Coinbase Custody’s secure, offline storage platform.”
FTX expands into United States
The news follows FTX’s launch of a spot exchange in the United States earlier this month.
In order to facilitate the U.S. expansion, FTX registered as a money services business with the Financial Crimes Enforcement Network, or FinCEN, with the exchange expecting to soon receive several money transmitter licenses at the state level also.
The exchange also confirmed that it will apply for a BitLicense in a bid to service New York-based traders.
FTX.US plans to support additional crypto assets and fiat on-ramps in the future. The exchange also offers margin trading for “eligible traders.”
FTX rises to prominence
Since launching 12 months ago, FTX has emerged as a top player in the crypto derivatives sector, handling $250 million in volume over the past 24 hours.
In December, FTX secured a “strategic investment” from Binance on an undisclosed sum.