Digital currency exchange company Coinbase has announced the launch of a new company to help institutional investors securely store digital assets: Coinbase Custody.
In a blog post, Coinbase CEO and co-founder Brian Armstrong said that Coinbase Custody is being designed keeping in mind the needs of institutional clients, such as strict financial controls, 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, high levels of cyber and physical security, among others.
“Coinbase is well positioned to launch this product. We already store billions of dollars worth of digital assets on behalf of our customers. We serve thousands of institutions via our GDAX product, the leading digital currency exchange in the U.S.,” he said. “We’ve raised $216M from venture capital firms and financial institutions like the NYSE/ICE, USAA, BBVA, Westpac, and MUFG. And we have approximately 200 employees working across our three offices in New York, London, and San Francisco with deep industry knowledge.”
Armstrong said that the main objective is to accelerate the flow of institutional money into digital currencies over the coming years.
Coinbase Custody is available only to institutional investors with a minimum of $10M in deposits. It will charge an initial setup fee of $100,000 USD, and a fee of 10 basis points per month on assets stored.
