Last week, Coinbase Custody accepted its first deposit. Today, they have announced that they are officially open for business.
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.
Coinbase Custody’s mission is to make digital currency investment accessible to every eligible financial institution and hedge fund in the world. The company promises that it will achieve this by striving to become the most trusted and easiest-to-use crypto custody service available.
Coinbase will protect the funds of institutional investors by ensuring the following four policies are met:
- Digital asset transactions are signed and broadcasted on-chain
- Offline private keys that require geographically distributed agents use cryptographic hardware to broadcast transactions
- Multi-layer security
- Cold storage
Over the coming weeks, Coinbase will continue on-boarding a set of world-class clients that includes leading crypto hedge funds, exchanges and ICO teams.
Crypto asset security
Over the past six years, Coinbase has pioneered leading crypto storage techniques and is currently responsible for the custody of more than $20 billion in crypto assets. Coinbase Custody builds on this expertise to offer a brand new, independent solution for our institutional customers. This new cold storage system has undergone rigorous penetration testing and cryptographic design review, and the company plans further, regular third-party examinations to ensure the platform’s ongoing security.
Coinbase Custody’s unique features include:
- On-chain segregation of crypto assets
- Split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions
- Multiple layers of security
- Robust cold storage auditing and reporting
A custody offering through a regulated, institutional broker-dealer
Coinbase Custody leverages the expertise and systems of their partner Electronic Transaction Clearing (ETC). ETC is a SEC-registered broker-dealer and FINRA member subject to regulated financial reporting and independent audits.
What’s coming next
Coinbase Custody provides secure storage of crypto assets for institutions in both the US and Europe. Before the end of the year, they hope to bring this offering to Asia as well.
Additionally, over the coming months, pending regulatory notifications, Coinbase will be focused on building the features and services that their institutional clients want.
- Support for more crypto assets
Coinbase Custody currently supports BTC, ETH, LTC and BCH. The company plans to continue adding support for new assets and will offer regular updates.
- Flexible access to funds
On top of Coinbase Custody’s cold storage, they will add secure, segregated hot wallets and scheduled withdrawals for maximum flexibility.
- Crypto-first features
Longer-term, the company is already thinking about how to securely enable their clients to participate in the crypto ecosystem through proof of stake and distributed governance. They look forward to partnering with their clients to bring these features to market.
As crypto continues its maturation as an asset class and more institutions enter the space, Coinbase is committed to delivering products and services that are tailored to their unique needs. Coinbase Custody delivers the trusted storage service that the company’s clients need to fully immerse themselves in the potential that crypto assets provide.