Coinbase will store Pax dollar funds from a pilot project of Facebook’s Novi digital wallet in its $180 billion custody division.
Facebook has recently collaborated with Coinbase to be its custody partner for the pilot of Novi. The product is a new digital wallet that lets people send and receive money without any fees by doing it securely. According to the official Coinbase Blog, the company supports Novi through Coinbase Custody which secures user funds.
Facebook’s head of F2, David Marcus, informed: “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.”
And also added an important piece: “The Novi pilot uses USDP (Pax Dollar) through partnerships with Paxos and Coinbase. USDP is a well-designed stablecoin that’s been operating successfully for over three years and has important regulatory and consumer protection attributes.”
Coinbase said that company has chosen it as the custody partner for Novi, a new digital wallet that the social media giant says will allow users to convert local currencies into crypto via a stand-alone app that plugs into other Facebook products such as Instagram.
Facebook will roll out a small pilot project, using the stablecoin Pax Dollar. In both the U.S. and Guatemala, allowing users to buy Pax through their Novi accounts. Coinbase will store the funds within its custody trust company, which manages around $180 billion of crypto assets and is regulated by the New York Department of Financial Services.
There are some limitations to availability for now. The mobile app won’t be available to residents of Alaska, Nevada and New York. Virgin Islands for now. Signup will require a valid government ID and sending and receiving funds will require both parties have active Novi accounts. Picking up funds can be done in person at a physical location depending on where you live or to a valid bank account.