Coinbase Custody has recently revealed on social media that it holds a total of $1.3 billion in assets under custody (AUC), and that it expects the number to rise to $2 billion “soon,” presumably as institutional investors keep entering the space.
Through a tweetstorm, Coinbase Custody, a platform specifically aimed for institutional investors, revealed the company’s CEO Sam McIngvale and its chief information security officer Philip Martin were in the United Kingdom recently to “discuss the institutional cryptoeconomy with a range of prospects and clients.”
On the microblogging platform, the company argued that while some believe there are no institutional-grade services in the cryptocurrency space, this isn’t true.
3/ “There’s a narrative out there that institutional-grade services don’t exist in crypto. This isn't true. Coinbase Custody is a regulated, insured and secure custodian. We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there.”— Coinbase Custody (@CoinbaseCustody) June 13, 2019
It added that Coinbase Custody is “always adapting” when it comes to security, by drawing on a “range of different technologies and systems.” The firm added it currently services over 90 clients, 40% of which are located outside the United States. Coinbase Custody noted it sees cities like London become “centers for crypto innovation” as the market grows and matures.
5/ On the future: “Coinbase Custody services over 90 clients. Of those, approximately 40% are outside of the US. As crypto matures as an asset class, we see financial hubs like London becoming centers for crypto innovation. We’re excited to be one of the companies driving this.”— Coinbase Custody (@CoinbaseCustody) June 13, 2019
As CryptoGlobe covered, Coinbase Custody got to $1 billion in assets under custody less than a year being launched, as it was adding on “average around $150 million” per month. To further service its clients, it recently started allowing them stake or “bake” their Tezos (XTZ) holdings for passive income.
It’s worth noting that Coinbase Custody is the “first institutional-grade, qualified custodian” to provide its users staking services for cryptocurrencies held in cold storage. It also offers its clients over-the-counter trading directly from cold storage. This allows them to easily access their offline funds.