Cryptocurrency exchange Coinbase announced Tuesday it is formally launching Coinbase Custody, a product aimed at aiding institutional cryptocurrency adoption. This is a highly anticipated service given the value of cryptocurrencies such as bitcoin, for public and private institutions formed or formed by workers have great purchasing power and can invest part of their assets in these safe and invaluable refuges such as cryptocurrencies.
First announced last year, Coinbase Custody is a crypto storage service directed specifically at large financial institutions, as previously reported by CoinDesk. At the time, the exchange said users would have to pay a $100,000 set-up fee and keep a minimum of $10 million in deposits. Further, there is a minimum monthly fee based on the assets stored. All this system to leave in custody that great wealth that belongs to public and private institutions.
The company reported the following. “We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available.”
The following was also reported, the product is part of suite of institutional products being launched, according to a press release. Coinbase explained why it chose to launch the product in the current environment, therefore, it reported the following:
“The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space. In fact, in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency. Some of the world’s largest financial institutions have also recently announced their plans to begin trading cryptocurrency.”
Of course, these institutions can bring “new capital, greater awareness and additional infrastructure to the space,” it said. “This movement requires institutional grade products and services, something Coinbase has been developing with leading institutions and which we are proud to formally launch today.” All of the above serves as a point of reference to be able to store without problems the large amounts of resources that generate wealth for the members of the institutions.
The company also announced that Coinbase Custody would be partnering with a U.S. Securities and Exchange Commission-regulated broker-dealer. As a result, the product combines Coinbase’s cryptocurrency security experience with third-party auditing and financial reporting validation, thus meeting the requirements of any other SEC-regulated broker dealer.
From the perspective of compliance with the laws of the SEC, it is appropriate to be able to visualize that the hedge funds created can be safe and under protection, public and private institutions can initiate this new form of investment. It waits for new ads.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.