‘Coinbase Custody’ A Service For Institutional Investors Goes Live
Off lately, the world’s largest cryptocurrency exchange Coinbase has been seen flexing its muscles for creating products and services that provides big giants and institutional investors an conducive environment to venture in the crypto space.
In May 2018, the company announced its ‘Coinbase Custody’ Service along with three other institutional products. The company claims Coinbase Custody as the most secure cryptocurrency solution that is developed in partnership with the SEC. The exchange explained it saying: “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.”
Today, July 2nd, Coinbase officially announced through an blog post that the service is now open for business. The exchange announced that the Coinbase Custody service has finally accepted its first deposit. The service is specifically aimed towards institutional hedge funds and other big clients and the first deposit made was of $10 million.
Currently, Coinbase has nearly $20 billion in form of digital assets. A number of cryptocurrency firms believe that the launch of the Custody service will help the exchange to raise another $10 billion.
In its blog post, the exchange explains that “Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.”
It further adds, “This new cold storage system has undergone rigorous penetration testing and cryptographic design review, and we plan further, regular third-party examinations to ensure the platform’s ongoing security.”
Some of the unique features of the Coinbase Custody service as described by the exchange itself include:
- On-chain segregation of crypto assets
- Multiple layers of security
- Split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions
- Robust cold storage auditing and reporting