Coinbase Officially Launches Institutional-Grade Custody Service

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Coinbase Custody

Leading US cryptocurrency exchange Coinbase has officially begun accepting deposits for its Coinbase Custody service, a new offering that aims to provide secure storage of crypto assets for institutions in both the US and Europe. Coinbase hopes to launch the offering in Asia before the end of the year, the company said on Monday.

“Over the past six years, Coinbase has pioneered world-class crypto storage techniques and is currently responsible for the custody of US$20+ billion in crypto assets,” Coinbase wrote in a blog announcement.

“Coinbase Custody builds on this expertise to offer a 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, an institutional-grade custody service, accepted its first deposit last week. The service is now live for all customers, accepting a minimum deposit of US$10 million. It charges a US$100,000 setup fee in addition to a 10 basis point (BPS) per month.

Coinbase Custody features on-chain segregation of crypto assets, split, offline private keys, multiple layers of security, and robust cost storage auditing and reporting. The service currently supports BTC, ETH, LTH and BCH but the company plans to add support for new assets in the future.

The custody service is offered through Electronic Transaction Clearing (ETC), a regulated, institutional broker-dealer and a partner of Coinbase.

The launch of Coinbase Custody comes at a time when rumors are circulating that Facebook may be looking to acquire Coinbase after the social network giant reversed its controversial ban on cryptocurrency ads. This have prompted further speculation that Facebook may be planning something major in the cryptocurrency space.

In May, the social network announced a major management reorganization, which included the launch of an exploratory blockchain group. At the head of the group is David Marcus, the former head of Facebook Messenger and a board member of Coinbase.

Experts have said that not only could the acquisition boost Facebook’s value, it would also add legitimacy to the cryptocurrency market.

“It wouldn’t surprise me if Facebook made an attempt to acquire Coinbase,” Oliver Isaacs, a tech entrepreneur, told The Independent. “Whether [Coinbase’s CEO] Brian Armstrong and the team would agree is another question.”