Coinbase Custody For Institutional Players Goes Live Offficially

  • Coinbase Custody For Institutional Players Goes Live Offficially

Coinbase Custody For Institutional Players Goes Live Offficially

In a blog post, Coinbase announced that after accepting its first trial deposit last week, Coinbase Custody is now live for all customers in both the USA and Europe.

First announced in November 2017, Coinbase Custody's mission is to make cryptocurrency investment accessible to every eligible financial institution and hedge fund in the world.

"Over the past six years, Coinbase has pioneered leading crypto storage techniques and is now responsible for the custody of more than $20 billion in crypto assets".

Bloomberg reports that the cryptocurrency service provider has already accepted deposits from ten hedge funds and family offices, all within its first week of operation.

As part of Coinbase's initiative to facilitate institutional investment in the cryptocurrency market, the exchange's Custody service is now live in the United States and Europe. This service will include cold storage of the clients digital assets as well as an institutional-grade broker-dealer and its reporting services. "This new cold storage system has undergone rigorous penetration testing and cryptographic design review, and we plan further, regular third-party examinations to ensure the platform's ongoing security".

This new service will only be accepting investors with a minimum balance of $10 million, charging a 0.1% fee on a monthly basis and $100,000 on set-up.

The service is created to act as a safe cold storage for cryptocurrency to be used by business interests such as investors, hedge funds, exchange and startups launching their own tokens with initial coin offerings.

Coinbase plans to expand their services from the USA and Europe to Asia by EOY 2018, as well as adding additional features in the near future. Before the end of the year, we hope to bring this offering to Asia as well.

Furthermore, the company is now awaiting pending regulatory notifications, after which new features are supposedly going to be introduced. Currently, the custodial service has only been activated for big coins like Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. As it stands right now, it supports BTC, ETH, BCH, and LTC. Over 100 pages of complaints were filed with the SEC, outlining major flaws of the exchange - mainly related to its failing customer support.

What do you think of Coinbase's Custody service?