Coinbase, a leading US-based crypto exchange has unveiled that it would provide custodial support for Telegram’s GRM token. The exchange unveiled this news through an official blog post on October 10.
According to the blog post, Coinbase’s custodial solution for institutional investors, Coinbase Custody, will support Telegram’s token dubbed GRM at its launch. Furthermore, the announcement unveiled that the exchange would support Sola (SOL) and OXT (OXT) tokens upon their launch as well. Per the blog post, Coinbase Custody would provide GRM holders with offline storage and insurance coverage.
However, Coinbase added that its custodial solution has a record of providing seamless solutions. The firm gave examples of Algorand and Blockstack. Apart from this, Coinbase mentioned that Coinbase Custody is a limited-purpose trust company. It added that the New York Department of Financial Services chartered and regulated the firm. This means that the platform fulfilled the requirements to become a qualified custodian under the US Investment Advisers Act of 1940.
Coinbase Custody is Not the First to Offer Support for GRM
Coinbase Custody is not the first firm to offer support for GRM at launch. According to a report, Anchor Labs unveiled that it would back the Telegram token in early October. Anchorage Trust Company, Anchor Labs’ subsidiary will reportedly become the first firm to offer institutional investors a chance to hold GMR tokens.
Per the official blog post, the firm intends to offer these services through Anchorage Trust Company or Anchorage Hold. However, neither of these firms are registered with the SEC. As such, the firm will not offer these services to New York services at the start.
Explaining how investors would buy the GRM token, the blog post stated that,
Those who wish to hold Gram will be able to acquire it in two ways: by purchasing existing Grams on the open market, or by purchasing new Grams from the TON Reserve. These two markets are meant to counterbalance each other, and stabilize both the price and supply of Grams
GRM Launch Set for late-October
This news comes after Telegram unveiled that it would launch the TON network and the GRM token in late-October. Per the announcement, Telegram will need investors to provide a public key that is created via specialized software. After doing this, they will be in a position to receive their GRM tokens by October 16. Apart from this, the investors will also have to find validators as neither Telegram nor the TON foundation will serve as validators after launch.
Do you think Coinbase Custody’s support for the GRM token will help boost its rate of adoption? Let us know in the comments below.