Coinbase Custody Opens for Business07.05.2018 By John D'Antona Editor, Traders Magazine
Coinbase is now officially open for business.
In a statement, the firm said that over the coming weeks, it’ll continue on-boarding a set of world-class clients that includes leading crypto hedge funds, exchanges and ICO teams.
Coinbase Custody’s mission is to make digital currency investment accessible to every eligible financial institution and hedge fund in the world. We’ll achieve this by striving to become the most trusted and easiest-to-use crypto custody service available. 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.
Crypto asset security
Over the past six years, Coinbase has pioneered leading crypto storage techniques and is currently responsible for the custody of more than $20 billion in crypto assets. Coinbase Custody builds on this expertise to offer a brand new, independent solution for our institutional customers. 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.
Coinbase Custody’s unique features include:
- On-chain segregation of crypto assets
- Split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions
- Multiple layers of security
- Robust cold storage auditing and reporting
A custody offering through a regulated, institutional broker-dealer
Coinbase Custody leverages the expertise and systems of our partner Electronic Transaction Clearing (ETC). ETC is a SEC-registered broker-dealer and FINRA member subject to regulated financial reporting and independent audits.
What’s coming next
Coinbase Custody provides secure storage of crypto assets for institutions in both the US and Europe. Before the end of the year, we hope to bring this offering to Asia as well.
Additionally, over the coming months, pending regulatory notifications, we’ll be focused on building the features and services that our institutional clients want.
- Support for more crypto assets
Coinbase Custody currently supports BTC, ETH, LTC and BCH. We plan to continue adding support for new assets and will offer regular updates.
- Flexible access to funds
On top of Coinbase Custody’s cold storage, we will add secure, segregated hot wallets and scheduled withdrawals for maximum flexibility.
- Crypto-first features
Longer-term, we’re already thinking about how to securely enable our clients to participate in the crypto ecosystem through proof of stake and distributed governance. We look forward to partnering with our clients to bring these features to market.
As crypto continues its maturation as an asset class and more institutions enter the space, Coinbase is committed to delivering products and services that are tailored to their unique needs. Coinbase Custody delivers the trusted storage service that our clients need to fully immerse themselves in the potential that crypto assets provide. We look forward to delivering more offerings over the coming months.
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