Leading cryptocurrency exchange Coinbase has announced today that its Coinbase Custody service for institutional investors in now officially open – in a significant move for the industry as a whole.
In a blog post on Medium, the exchange announced that after accepting their first deposit last week, they will be bringing onboard institutional investors including hedge funds, exchanges and ICOs – explaining the service’s new goals:
“Coinbase Custody’s mission is to make digital currency investment accessible to every eligible financial institution and hedge fund in the world. We’ll achieve this by striving to become the most trusted and easiest-to-use crypto custody service available. Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.”
Adding that the new cold storage system has “undergone rigorous penetration testing” to ensure the platform is secure enough for institutional investors, the post explains that the exchange has planned for regular examinations by third-parties to ensure that security is maintained.
In addition, the new service will offer on-chain crypto-asset segregation, a custody offering through a regulated institutional broker and will be linked to their SEC-registered partner Electronic Transaction Clearing (ETC).
With many within the industry basing their long-term bullish projections on the arrival en masse of institutional money, this latest addition to Coinbase is undoubtedly a significant development on the path to the broader success of cryptocurrency.