Coinbase has officially launched its custody service for institutional clients. Due to the digital nature of the crypto assets, a specialized service for storing them safely was in demand, and Coinbase move in custody service is supposed to fill this gap. According to Sam Mcingvale product lead “Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.”
Coinbase says that its custody service will have unique features like “On-chain segregation of crypto assets,” “offline,multi-sig and geographically distributed transaction protection” besides having a robust cold storage, auditing, and reporting.
Coinbase has already been a custodian of $ 20 billion worth of crypto assets in the past six years, and this custody offering will be secured through SEC and FINRA regulated Electronic transaction clearing.
The service as of now will be limited to Europe and US and is expected to arrive in Asia before the end of this year. The currency available will be similar to the ones offered through coinbase.com, and more coins will be added, so expect ethereum classic to arrive as soon as it is available for trading through coinbase.com.
Features like hot wallets, scheduled withdrawals will also be added after obtaining regulatory clearance
The service as of now requires a minimum of $10 million worth of digital assets and a $100,000 initiation fees. According to coinbase around $10 billion worth of institutional money waiting on the sidelines will enter in the crypto market due to the introduction of this service.
Coinbase has been quite active recently in terms of launching services. It recently started an index fund last month for “US-accredited” investors and has revealed plans to open its service for Japanese investors.