Announced only last year, Coinbase Custody is a cryptocurrency storage service directed specifically at large financial institutions. At the time, the exchange said users would have to pay a $100,000 set-up fee and keep a minimum of ten million dollars in deposits. Further, there is a minimum monthly fee based on the assets stored.
“We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure cryptocurrency storage solution available,” the firm said.
The product is part of suite of institutional products that is being launched, according to a press release. Coinbase explained why it chose to launch the product in the current environment, stating:
“The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space. In fact, in the past few months over a hundred hedge funds were created that exclusively invest in and trade cryptocurrency. Some of the world’s largest financial institutions have also recently announced their plans to begin trading cryptocurrency.”
These institutions may bring “new capital and greater awareness and additional infrastructure to the space,” it said. “This movement requires institutional grade products and services, something Coinbase has been developing with leading institutions.”
The company also announced that Coinbase Custody would be partnering with a U.S. Securities and Exchange Commission-regulated broker-dealer.
As a result, the product combines Coinbase’s crypto security experience with third-party auditing and financial reporting validation, thus meeting the requirements of any other SEC-regulated broker dealer.