The famous and recognised cryptocurrency exchange and platform, Coinbase, announced on Tuesday that it has formally launched Coinbase Custody, the product designed specially for institutional investors. The information has been released by Coinbase in a blog post signed by Adam White, General manager at Coinbase.
Coinbase Custody – Attracting Institutions
Cryptocurrencies have been expanding since some months, but there is a lack of institutional investors in the market. There is a problem, there are very few regulated platforms, and they do not facilitate services for enterprises, hedge funds, or other important institutions.
That’s the reason why Coinbase decided to develop this service, Coinbase Custody. Back in November, Brian Armstrong, CEO and Co-Founder at Coinbase unveiled that they were working in this new platform.
The blog post uploaded by Coinbase reads as follows:
“The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space. 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.”
But the market did not offer institutional grade products to meet the market demand. But Coinbase Custody solves that issue and allows institutions to securely invest in the crypto market.
“We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available,” reads the statement. “In partnership with a 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 launching partners of Coinbase Custody include: Autonomous Partners, boostVC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital, Walden Bridge Capital, and others.
At the same time, Coinbase launched another product known as Coinbase Prime, a platform designed to provide a suit of tools and services that institutional investors rely on when trading cryptocurrency. During this year, Coinbase will be offering lending and margin financing products, high touch and low touch execution service like OTC trading and algorithmic orders, and new market data and research products.