Coinbase is already storing more than $9B of digital currency on behalf of our customers, and we’re excited to bring a new product built specifically for institutional investors.
Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.
When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.
This is why I’m excited to announce Coinbase Custody. The next step to accelerating the world’s adoption of digital currencies is to unlock the institutional money preparing to enter the space.
We are designing Coinbase Custody to meet the needs of institutional clients. In particular, we feel that institutional clients require:
Strict financial controls (multiple signers, audit trails, limits, etc)
Dedicated account representatives and phone support
SLAs on funds transfers
A regulated digital currency custodian
Multi-user accounts with separate permissions
Support for a wide range of digital assets and currencies
Insurance (in some cases)
And high levels of cyber and physical security
https://medium.com/@barmstrong/announcing-coinbase-custody-a-digital-currency-custodian-for-institutions-907166d7af85
