Coinbase has proved to be the best cryptocurrency service since its launch in 2012. It has recently launched Coinbase custody which makes the process of cryptocurrency investment easier for institutional investors. Coinbase offers reliable cold storage options for assets thereby aiming to gain business from these investors.
A report from Bloomberg shows that Coinbase has already accepted deposits from 10 family offices and hedge funds within the first week of its operation. It aims to attract nearly 100 institutional clients with a total asset value of $5 billion by January. This has shocked the industry as no one expected institutional investors to lay their bets on one firm. However, the statement from Sam Mcingvale, Coinbase Custody product lead, states that the company has been preparing for this move for quite some time.
He says ”for the last six years, Coinbase has retained the confidence of investors with its innovative crypto storage techniques and have successfully managed crypto assets worth $20 billion. The company’s Coinbase custody program builds on this expertise to provide a customized, independent solution for institutional customers.”
For this new service, the minimum balance will be $10 million, and a charge of 0.1% fee on a monthly basis will be collected. There will be $100,000 setup fees also. Coinbase has used several unique security features to ensure the security of funds. The four unique features are as follows:
- On-chain segregation of crypto assets
- Use of split in which the offline private keys will be provided to the geographically distributed agents who use cryptographic hardware to sign transactions
- Use of multiple layers of security
- Robust cold storage reporting and auditing
These are new levels of security that are aimed to reduce the loss of cryptocurrency in computer hacks. “Geographically distributed” multi-signature requirements for withdrawing the assets ensure that there will not be a single point of failure. The service is available for “Coinbase Four” – Bitcoin, Litecoin, Ethereum and Bitcoin cash. However, Mcingvale told that Coinbase is expanding this service to other cryptocurrencies in the near future.
Institutional investment in cryptocurrency grows at a rapid rate
Similar to coinbase, Blockchain also announced institutional platform named as Blockchain Principal Strategies. BPS provides custodial services and even cryptocurrency analytics and research services identical to that of Wall Street. Blockchain CEO, Peter Smith, has high hopes for the service to serve institutional investors. Goldman Sachs backed circle increased its monthly investment in its trade platform officing OTC trading.
All these things signal that the market has finished reaching the bottom before the impending bull run.