Coinbase Rolls Out Crypto Storage Service For Financial Institutionsbr>
Cryptocurrency exchange Coinbase is formally launching Coinbase Custody, a crypto storage service directed specifically at large financial institutions.
Coinbase Custody, first announced last year, is a partnership with ETC, a SEC-regulated broker-dealer, that will store cryptocurrency for its clients. It provides extra security measures and complies with a series of regulations required by banks and investment companies.
“In partnership with an SEC-regulated broker-dealer, Coinbase Custody is proud to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer,,” the exchange said.
Coinbase has already stored more than $20 billion of cryptocurrency on behalf of customers through its exchange, but until the announcement did not have a separate product to handle that.
“The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space,” the exchange said. “In fact, in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency. Some of the world’s largest financial institutions have also recently announced their plans to begin trading cryptocurrency.”
Coinbase’s launch partners include 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.
The company also announced Coinbase Prime, a new platform designed specifically to provide a suite of tools and services that institutional investors rely on when trading cryptocurrency. The exchange expects Coinbase Prime to accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class.
“Coinbase Prime will fill a missing piece of critical infrastructure needed for institutions,” the exchange said.
Adam White, VP and general manager of Coinbase Institutional, said that there is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs.
“Through new products like Coinbase Prime and Coinbase Custody, we’re building the necessary capability for institutions that allows cryptocurrencies to be traded and stored in a compliant, trusted and efficient manner,” said White.