Coinbase Launches Custody Service, Plans for Asia Release

Bitcoin and other cryptocurrencies

Bitcoin and other cryptocurrencies

Coinbase is one of the companies that offer custodian services for institutional investors seeking exposure on digital asset markets.

Coinbase Custody will offer its clients cryptocurrency cold storage options, "institutional-grade broker-dealer" services, and asset coverage.

"Today, we're proud to announce that we're officially open for business", Coinbase Custody's Product Lead Sam McIngvale said. According to Coinbase representative, the exchange has been talking with the regulators to ensure compliance.

Coinbase plans to expand their services from the U.S. and Europe to Asia by EOY 2018, as well as adding additional features in the near future.

Major U.S. crypto exchange and wallet provider Coinbase has announced that its digital assets custodian solution for institutional investors is now launched, in an official blog post July 2.

"Coinbase Custody's mission is to make digital currency investment accessible to every eligible financial institution and hedge fund in the world". But the new service will cater specifically to institutional investors.

This is a strong move by the exchange and, over the long-term, a smart one. They smell profit, and they're putting their considerable financial resources behind these initial forays. An infusion of massive capital not only helps bring further legitimacy to the market, but it should also help buoy prices as well.

Coinbase is certainly expanding, and there have been a fair number of changes over the a year ago. Additionally, the company's new Coinbase Pro platform is off to a rocky start. However, Mcingvale noted that Coinbase plans to add support for more cryptocurrencies within the near future. To be fair, they have beefed up their support staff and have cut down the backlog by 95 percent. The service is aimed at institutional hedge funds and other big institutional investors who are willing to invest n the crypto space in huge sums.

Snarkiness aside, this is a positive development.

As per today's post, Coinbase has already been storing over $20 billion worth of clients' crypto over the past six years, but its new custody offering will notably be secured through an SEC-compliant and FINRA-member independent broker-dealer, Electronic Transaction Clearing (ETC).

What do you think of Coinbase's Custody service?

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