Coinbase stock advances 4% after Facebook taps it for Novi pilot

Coinbase Global (NASDAQ:COIN) stock jumps 4.1% in premarket trading after Facebook (NASDAQ:FB) chooses the cryptocurrency exchange as its custody partner for a pilot of Novi, Facebook's new digital wallet. Novi users who can participate in the pilot can acquire Pax Dollar (USDP) through their Novi account; Novi will hold the asset on deposit with Coinbase Custody. Novi users will then be able to transfer USDP between each other instantaneously, Coinbase (COIN) said. Coinbase (COIN) Custody, which manages $180B (as of June 30) of crypto assets, is regulated by the New York Department of Financial Services and is a fiduciary under New York state banking law. Novi users will also benefit from Coinbase Custody's insurance program, which includes a $320M commercial crime policy, the company said. Previously (Oct. 14), Coinbase suggests new crypto regulatory framework to replace SEC