Coinbase To Start Digital Asset Storage Service For Institutional Investorsbr>
Coinbase, the largest US cryptocurrency exchange, will establish a new division to help institutional investors securely store their digital assets.
Because of the number of digital assets hedge funds emerging in the market, Coinbase will establish Coinbase Custody, a way to store value for institutions who are in the cryptocurrency game. Brian Armstrong, the Coinbase CEO, predicted that as much as $10 billion of institutional money could be invested in digital currency in the near future, leaving an opportunity for his company. Coinbase already holds $9 billion in digital currency for its customers.
“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely,” wrote Armstrong.
The new storehouse is not for small business. A minimum of $10 million in deposits is required, along with a $100,000 set-up fee. Firms will also have to pay a 10 basis point per month fee while they have assets stored.
“The next step to accelerating the world’s adoption of digital currencies is to unlock the institutional money preparing to enter the space,” Armstrong claimed.
No details were available on whether the deposits will carry a form of insurance and what other requirements are mandatory to participate.