Cryptocurrency exchange Coinbase announced Tuesday it is formally launching Coinbase Custody, a product aimed at aiding institutional cryptocurrency adoption.
First announced last year, Coinbase Custody is a crypto storage service directed specifically at large financial institutions, as previously reported by CoinDesk. At the time, the exchange said users would have to pay a $100,000 set-up fee and keep a minimum of $10 million 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 crypto storage solution available," the firm said today.
The product is part of suite of institutional products being launched, according to a press release. Coinbase explained why it chose to launch the product in the current environment, saying:
"The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space. In fact, in the past few months over 100 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 can bring "new capital, 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 and which we are proud to formally launch today."
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 cryptocurrency security experience with third-party auditing and financial reporting validation, thus meeting the requirements of any other SEC-regulated broker dealer.
The company's launch partners include 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.
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