Coinbase’s Cryptocurrency Custodial Service Now Opens for BusinessJuly 10, 2018
Coinbase recently announced the official opening of its cryptocurrency custody service. The said service will be issued through its subsidiary, the Coinbase Custody. The exchange announces on Monday that it started collecting deposits from clients and hedge funds.
Coinbase is a financing institution that acts as a safe keeper of investor’s securities. As an addition to the company’s secure storage, the custodian also provides additional services to ensure safe trading and transactions of all the securities.
The Coinbase announced on Twitter that their first deposit was last week. Today, the cryptocurrency service is life for all the customers. Coinbase presently holds more than $20 billion cryptocurrency assets. The company also hopes that its new service will help raise another $10 billion.
The new service launched by Coinbase is the combination of a comprehensive client coverage program, institutional-grade broker-dealer and cold storage for cryptocurrency assets. The company also acquired three companies last June to pursue these services. Coinbase also applied and was granted by the US Securities and Exchange Commission with a license to operate as a broker-dealer.
It was known whether the company had secured a license yet. Coinbase recently announced that they control the system and expertise of two of its partners for the custody services now. For its custodial services, the company presently supports Litecoin (LTC), Bitcoin Cash (BCH), Ether (ETH) and Bitcoin (BTC). Coinbase’s custodial services will be available to all the investors in Europe and US.
There have been a lacked cryptocurrency custodian services for cryptocurrency across the globe. However, the recent action done with regards to custodian service has improved recently. The Security Exchange Commission opened its guidelines to permit crypto businesses to provide services in a structured way.
Coinbase announces in November 2017 that clients should pay $100,000 as their set-up payment, as previously reported. The company formally launched its product in May, and the firm further discusses its plan of working with the Exchange Commission and U.S Securities broker-dealer.
As of today, the custody services are available to all the clients in Europe and United States. However, there are no timelines announced, and the company said that they are looking forward to opening its custody service for their clients in Asia by the end of the year. Since cryptocurrencies are prone to thefts, a regulated custodian services like the Coinbase Custody provides investors the safety they are looking for their savings.