Coinbase has recently launched its Custody service specifically designed for institutional investors. According to a report from Bloomberg, the famous virtual currency platform has already added 10 customers for its new service.
Coinbase Custody Starts Operations
Coinbase is one of the most important cryptocurrency platforms all over the world. The company is working in order to have 100 large institutional customers by the end of the current year, and over $5 billion assets under management.
Coinbase’s custody services is entering an industry that has been suffering and experiencing hacks and other security attacks that resulted in millions of dollars lost. With this new service, the market may see new institutions investing big sums of funds, something that could bring the price of virtual currencies up.
During the last months Coinbase has been talking with the Securities and Exchange Commission (SEC), and Financial Industry Regulatory Authority (Finra) in order to be compliant with all the current rules applied to the market.
Sam McIngvale, Product Lead, Custody at Coinbase, commented on the matter:
“We sort of have an understanding with the SEC and Finra, and it allows us to execute contracts with clients and take the first deposits.”
Since the beginning of the year, most of the virtual currencies in the market have lost over 70% of their price. At the moment, the service for institutions will be available for Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BTC). In the future, Coinbase is trying to offer more virtual currencies. Additionally, the platform is only available for the United States and Europe, but in the near future it will start providing services in Asia.
Coinbase is trying to receive approval from different regulatory agencies in order to be able to list tokens issued by Initial Coin Offerings (ICOs). This is the reason why the company bought a decentralized crypto exchange for ERC-20 tokens.
Other products that the company launched are Coinbase Markets, Coinbase Prime and Coinbase Pro – the last one as a replacement for the GDAX trading platform.