Coinbase Custody now live, for deposits of $10 million or more
Coinbase's latest offering is now live, as part of a wider institutional money strategy.
It's the age old problem. You have $10 million of crypto assets burning a hole in your Ledger and want to find a safe place for it. Xapo is a little extreme for your tastes and only takes bitcoin anyway, you don't trust yourself with a series of paper wallets, and for some reason you're not too keen on just keeping the money on an exchange.
Coinbase has the answer, with Coinbase Custody now live. For an easy $100,000 set-up fee and a 10 basis points per month fee on the assets being held, institutional clients and really high net worth individuals can keep a wide range of digital assets under custodial lock and key.
Coinbase Custody was first announced in November 2017 as part of the exchange's broader move to cater to institutional clients. Coinbase says it currently holds more than $20 billion in cryptocurrency assets and hopes that Coinbase Custody can move that number upwards by another $10 billion.
The ambitious targets might be achievable in connection with Coinbase's recently-launched OTC platform. Even as cryptocurrency prices slump across the board, the OTC, or block trading, scene has been booming and exchanges are in a race to scale up their offerings for institutional traders.
It's a small piece of Coinbase's broad expansion plans, which include heavy investment in a platform called Compound, aimed at creating a thriving crypto ecosystem, essentially giving people something to do with their cryptocurrency rather than sell or "hodl" it.
At the moment Coinbase's chief obstacles are probably the connected issues of regulatory barriers and only offering a very limited range of digital assets. It's whittling away at the regulatory obstacles and is aggressively moving to add a wider range of coins, starting with a selection of Ethereum-based ERC20 tokens.
Coinbase Custody is still in an early access stage of sorts, and it's possible that the current $10 million minimum deposit will shift, in either direction, as Coinbase gets a better sense of the market's demand. The fees are similarly subject to change over time.
Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, NANO
- Ethereum’s price rallies after adoption by a major Gulf State
- Bitcoin price is starting to look choppy and the US Fed may make it worse
- Ethereum’s price action heats up with overnight gains of 8% – here’s why ETH may surge further
- Bitcoin gains 6% in less than 12 hours: Could this be the start of another bull run?
- DeFi on Avalanche: How to get started yield farming