Coinbase Goes Live With Custody Solution
Coinbase — a household name in the crypto-community for buying and selling cryptoassets — has taken its custody solution live, and is now accepting deposits. Coinbase Custody offers institutional clients the ability to securely store cryptoassets (BTC, ETH, LTC, and BCH) with peace of mind. The service has a $10 million minimum deposit and charges a $100,000 set-up fee which is followed by a 0.10% monthly maintenance fee.
After recently partnering with Electronic Transaction Clearing (ETC) — an SEC-compliant and FINRA member — Coinbase Custody has begun to provide industry-leading cold storage practices, including: on-chain segregation of cryptoassets, split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions, multiple layers of security, and robust cold storage auditing and reporting. Coinbase has been responsible for the custody of more than $20 billion in cryptoassets over the past six years, and this latest service is one in its upcoming suite of institutional products.
Custodianship has been a major issue for the space in general, and has especially concerned institutional investors as they are faced with securely storing tens of millions of dollars worth of cryptoassets at a time.
Historically, virtually no third party services have been offered to handle cryptoasset storage, despite security of cryptoassets becoming a growing issue as exchanges continue to be maliciously attacked.
Coinbase also announced in early May that they have been working with the SEC to acquire a number of regulatory licenses such as a broker-dealer license, an alternative trading system license and an investment advisor license.
Upon acquiring these licenses, Coinbase should be able to work more with institutions in offering securities to the general public. This should help projects a lot with coming to market in a fully compliant manner while launching an ICO.
Coinbase is truly striving to become the go-to platform for institutional cryptoasset investing. Coinbase has also recently released Coinbase Prime — an institutional trading platform offering margin finance, OTC block trading, and algorithmic trading.
Furthermore, Coinbase’s Institutional Coverage group aims to serve sales trading, research, market operations, and client services support. Their team additionally has relevant experience from firms such as the NYSE, Morgan Stanley, the SEC and the CFTC. Coinbase Custody is one stepping stone in the right direction for supporting the growth of institutional investors in this emerging asset class.