Cryptocurrency operator, Coinbase announced Monday that its product for institutional investors is officially open and accepting deposits. In a blog post, Coinbase said that ‘Custody’ received its first deposit last week will continue to onboard new clients.
Coinbase Custody is officially open for business, providing secure storage of crypto assets for institutions in both the US and Europe. Before the end of the year, we hope to bring this offering to Asia as well. https://t.co/KDtMQ5TT3B
— Coinbase (@coinbase) July 2, 2018
The post read:
“Over the coming weeks, we’ll continue on-boarding a set of world-class clients that includes leading crypto hedge funds, exchanges, and ICO teams.”
In a previous report in May, Coinbase said that a suite of products targeted at institutional investor was in the works. Coinbase Custody combines tools from the new suite, including an institutional grade broker-dealer, reporting, and white-glove client services.
Clients including institutional hedge funds will be required to maintain a minimum deposit of $10 million. The service also attracts a set-up fee of $100,000 and Asset management fee of 10 bps per month. This service is now available to clients in the US and Europe. It will be available to users in Asia by the end of the year, the post stated.
Coinbase, which recently transited from GDAX to Coinbase Pro holds more than $20 billion in digital assets and hopes to add another $10 billion with the introduction of Custody.
The exchange has gone about expanding its businesses and attracting institutional investors have become one of its main focus. It plans to obtain the license to become a broker-dealer which would broaden its service offerings. According to the announcement, Coinbase already works with an SEC-registered broker-dealer Electronic Transaction Clearing (ETC).
It also promised to increase the number of tokens available for trading on its platform, introduced segregated hot wallets to make funds more accessible and introduce crypto-first features like distributed governance. The exchange announced it would add ethereum classic (ETC) to its list of tokens which currently includes (BTC, ETH, LTC, and BCH)
Solomon Sunny is the market reporter for Smartereum, one of the global leaders in Ethereum, blockchain and currency news. He produces technical price updates on digital currencies and writes recent developments about blockchain.