Coinbase creates Custody, a service that promises comprehensive control over large wallets in Bitcoin

The Coinbase platform has launched “Custody“, a service that promises “functions with a high level of deposit management” that include stricter financial controls and separate access permits. It is aimed at institutions and individuals who need to store 10 million dollars or more in Bitcoin on the platform.

With more than 9 billion dollars in digital assets currently stored by retail investors, Coinbase is looking to expand its market and also provide services to wholesale or institutional investors. This includes equity managers, capital investment funds and high-risk funds to fully invest in digital assets through the provision of deposit services as of 2018.

According to Brian Armstrong, CEO of Coinbase, the main obstacle to preventing institutions from starting to use digital assets is the ability to find a reliable custodian of digital assets that can be trusted to store customer funds securely.

That does not mean it’s going to be cheap or that it’s for everyone. Institutions or individuals must maintain a minimum balance of $ 10 million dollars to be eligible and must pay a start fee of $ 100,000 and a rate of 10 basis points per month for all assets under the administration of Coinbase.

As the cryptocurrency ecosystem continues to evolve and the solutions become more available and easier to use, Coinbase and other providers will begin to focus on the wide range of wholesale and institutional investors. These are organizations that have remained on the sidelines, hoping to invest in digital assets with a deposit that meets the regulatory needs in force in the US.

Retail investors who maintain their confidence in the current solutions offered by Coinbase should be delighted with the potential offered by the “Custody” service for the market in general. However, it remains to be seen if Coinbase can still provide high-level solutions for its retail clients, as well as remain transparent in its recent legal battle with the IRS.

Enric Martí

Enric Martí

Economy fan, hangued, hooked on crytocurrencies and junkie of audiovisual stuff...on rehab