Coinbase Custody Officially Launches for Institutional Investors

Roman Schwartz
July 5, 2018

Coinbase Custody is comprised of Coinbase's famous cold storage, Electronic Transaction Clearing [ETC] as a broker-dealer, and a client coverage program.

"Coinbase Custody builds on this expertise to offer a brand new, independent solution for our institutional customers", said McIngvale. After accepting its first trial deposit last week, the newly introduced custodial service is up and running.

In order to comply with the regulations, the platform has claimed that prior to the launch of its new service, Coinbase had a talk with the concerned authorities - Securities and Exchange Commission [SEC] and Financial Industry Regulatory Authority [Finra], and hence, are aligned with the law. Over the past few months, a company named Taylor lost $1.35 million worth of Ethereum to a hack and South Korean exchange Bithumb had $32 million in bitcoin and other cryptocurrencies stolen.

Coinbase now supports Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) for its custodial services, but plans to add more cryptocurrencies in the near future.

"This new cold-storage system has undergone rigorous penetration testing and cryptographic design review", McIngvale said, "and we plan further, regular third-party examinations to ensure the platform's ongoing security".

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The exchange now holds more than $20 billion in crypto assets, it also said Monday - a number the company hopes Custody will help raise by another $10 billion. McIngvale also commented that the company now serves institutions in the USA and Europe and intends to expand into Asia before the end of the year.

Custody aims to open up digital currency investment to a wider demographic including hedge funds and financial institutions. The customer base that includes home offices and hedge funds can now keep their digital assets in safety, as they would keep their traditional assets.

Coinbase, which recently transited from GDAX to Coinbase Pro holds more than $20 billion in digital assets and hopes to add another $10 billion with the introduction of Custody. Unlike many online publications, we don't have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.

The goal for Coinbase Custody is to become the most trusted and simple to use crypto custody service in the world.

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