Facebook chooses Coinbase as the Pilot for its Crypto Wallet Novi

Facebook chooses Coinbase as the Pilot for its Crypto Wallet Novi

Coinbase, an American-listed cryptocurrency exchange has been selected by Facebook to pilot its crypto wallet Novi. A blog post on the exchange’s website stated that the pilot is being supported by Coinbase Custody.

Its features include funds security through Coinbase’s segregated cold storage capabilities. Private keys can also be managed by Coinbase. Novi users can purchase Pax Dollar (USDP), through their Novi accounts. These funds will be kept on deposit at Coinbase Custody Trust Company. The New York Department of Financial Services regulates the firm.

Users have access to Coinbase Custody’s insurance program. This includes a $320 Million commercial crime policy. Coinbase has been a leader in the development of secure and scalable crypto infrastructure over the past nine years. We initially created it to power our first party applications. The US-listed crypto exchange stated that they then produced this infrastructure and now supply secure infrastructure solutions for the rest of market.

The company stated that they believe every company will become a cryptocurrency company in the future. This includes fintech platforms, banks and social media companies as well as crypto-related brands. We want to provide them with the best tools so that their users can have an exceptional experience and take part in the crypto economy.

Pilot Targeting First to US and Guatemala Users

According to David Marcus (Facebook’s blockchain executive), Facebook has begun piloting its digital wallet in the United States and Guatemala. “We are also hopeful that this will demonstrate a new use case for stablecoin (as payments instrument) beyond what they are used currently,” Marcus said about the announcement.

After a series regulatory steps backs, Facebook’s wallet project was originally called Libra. However, it was rebranded as Diem in April 2020.

Coinbase recently announced the launch its waiting list for its marketplace of non-fungible tokens, NFTs.