Coinbase has enjoyed a fruitful in term of product developments, releasing announcement after announcement, including their venture capital fund, index fund, and new listings. Its most recent endeavor of the company is their Coinbase Custody – a new platform aimed at providing secure storage of digital items for institutional investors.
Coinbase Custody service was created to provide access to institutions and companies which are looking to get involved in trading digital currencies. Following the emergence of many hedge funds that target the crypto space, the offering was made to give institutions customizable custodial options.
Basically, Coinbase Custody aims to keep the digital assets of institutional investors safe and secure in storage – as well as offering audit trails, withdrawal limits, and support for multiple signers.
The platform also has phone support if its clients want to confirm fund transfers and other account modifications, and it was made to support ‘all major digital assets’ – currently stipulated as the same assets Coinbase has listed on its platform, which are Bitcoin, Ethereum, Litecoin, Ethereum Classic and Bitcoin Cash.
Un until recently, Coinbase’s most noteworthy ventures have targeted traditional clients and early-stage venture capital. With Coinbase Custody, the platform shifts its focus on to financial institutions and hedge funds.
To use Coinbase Custody you need to have a minimum balance of $10 million USD, and $100,000 USD for the setup fee in addition to a 10 basis points fee that is charged every month.
The service is significant for the fact that it makes available for institutional investors and hedge funds secure means through which they can enter and interact with cryptocurrencies. While multi-signature wallets and even hardware wallets might be the first choice of strict investors, the new platform was created to offer a secure and stable service for business, enterprise, and other financial clients.
In brief, the exchange’s new service will allow large-scale businesses to enter and compete in cryptocurrency markets along with individual and institutional investors.
“Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today,” outlined CEO Brian Armstrong.
For the time being, the platform is only available to firms that operate in the United States and Europe, but the company said it is planning an expansion into Asian markets in the latter term of 2018.
The platform will probably be adjusted to Coinbase’s listing options. Whether it will offer support for Ethereum Classic and other ERC20-based tokens has not yet been confirmed.