Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Coinbase Chosen as Facebook's Custody Partner for Novi Pilot

Published 10/19/2021, 10:30 PM
Updated 10/19/2021, 10:30 PM
© Reuters

© Reuters

By Sam Boughedda

Investing.com — Coinbase (NASDAQ:COIN) shares have seen a sharp rise Tuesday following a positive crypto market and news that it has been chosen as the custody partner for Facebook (NASDAQ:FB)'s pilot of Novi, a new digital wallet.

Coinbase shares rose 2% on Tuesday and hit a high of $307.83 after the opening bell. Facebook shares are up nearly 1%.

Facebook's wallet will enable people to send and receive money abroad instantly without fees. Coinbase Custody uses a fully segregated cold storage capability for managing private keys.

Coinbase said users involved in the pilot can acquire Pax Dollars through their Novi account. A Pax Dollar is a stablecoin backed one-to-one by the U.S. dollar and issued on the Ethereum blockchain.

"Novi users who can participate in the pilot can acquire Pax Dollar (USDP) through their Novi account, which Novi will hold on deposit with Coinbase Custody. Novi users will then be able to transfer USDP between each other instantaneously," stated Coinbase.

Facebook's David Marcus said via Twitter that the pilot will be held in Guatemala and the U.S. to test core feature functions.

"Remittances are a critical way to achieve financial inclusion. Today, we’re rolling out a small pilot of the @Novi digital wallet app in two countries — the US and Guatemala. People can send and receive money instantly, securely, and with no fees," said Marcus.

Users of Novi will also benefit from Coinbase Custody’s insurance program, which includes a $320 million commercial crime policy.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.