The largest American cryptocurrency platform Coinbase starts accepting deposits from whale investors. The Coinbase Custody service will be targeting clients willing to deposit at least $10 million. So far the service will only be available in EU and U.S. but the platform is hoping to enter the Asia market soon, says the announcement
As noted in the company's blog, Coinbase Custody is available for institutional investors such as hedge funds and other market participants who are willing to invest in cryptocurrency. According to representatives of the California company, the first deposit on the Coinbase Custody platform has been made last week with the service now becoming available for all market participants.
Currently, Coinbase operates crypto assets amounting to a total of $20 billion. The company hopes that the Coinbase Custody platform will attract additional $10 billion in funds. With the new offering, the company says it seeks to address the issues surrounding the security of cryptocurrencies, which the bigger investors are concerned with. Coinbase will employ a range of measures such as “robust cold storage auditing and reporting” and “on-chain segregation of crypto assets” to ensure the investments are secure.
The Custody service was also designed to abide by U.S. and European regulators and work through the verified Electronic Transaction Clearing (ETC) system. Coinbase hopes this would attract investors that wish to comply with regulations at every step of the way.
Coinbase custody was presented in November 2017. To use the service, a customer needs to pay the initial set-up fee of $100,000, along with a 10 basis point fee per month on the coins stored in the system.
By Nadya Astam