After announcing it in 2017, Coinbase, one of the world’s largest cryptocurrency exchanges, has launched its ‘Custody’ service today, broadcast in an earlier tweet.
Coinbase Custody is officially open for business, providing secure storage of crypto assets for institutions in both the US and Europe. Before the end of the year, we hope to bring this offering to Asia as well. https://t.co/KDtMQ5TT3B— Coinbase (@coinbase) July 2, 2018
Aimed at bringing institutional investors into the cryptocurrency space, Coinbase’s Custody service has a $100,000 set up fee and requires investors to keep a minimum of $10 million in deposits. It seeks to safeguard cryptocurrency investments similarly to traditional securities; a move that is welcomed by many a hedge fund which may be risk averse when dealing with a space that is notorious for its hacks and thefts at the hands of cybercriminals. Instead, funds will be kept protected in cold storage until they are needed to be moved to a ‘hot wallet’ in order to be traded.
In his announcement post in November 2017, Coinbase’s Brian Armstrong explained the reasons behind the launch of the new Custody service:
The company aims to increase its insitutional customer base to at least 100 by the end of the year, with the goal of boosting its already $20 billion in crypto assets to $30 billion or more.
The service is initially available for Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, though Coinbase does plan on introducing more cryptocurrencies to both its exchange and its Custody service.
As of today, Coinbase Custody is open for deposits from Europe and the US, but Coinbase hopes to expand this to Asian clients by the end of 2018.