Coinbase has announced that it has added ten new customers for its crypto custody services. The ten comprise hedge funds and family offices. The giant crypto exchange debuted the custody services last week with the sole aim of safeguarding virtual assets in a way that is similar to traditional securities.
The person charged with leading the initiative, Sam McIngvale, in a phone interview with Bloomberg says the company’s sole objective is to have over 100 large institutional investors by the end of December 2018 and they should have assets worth over $5Billion under their management. He adds that the exchange already stores over $20 Billion in crypto assets for retail investors.
These type of services will allow more pensions and hedge funds to invest in virtual currencies as they are required by law to use regulated custody that meets the requirements of authorities. This will be a good thing for the cryptocurrencies as they stand to see an influx of new cash injected into the market.
McIngvale says that the exchange has been in contact with the Financial Industry Regulatory Authority and the Securities and Exchange Commission in a bid to ensure compliance. The SEC spokesman, Ryan White declined to comment on the issue when reached out by Bloomberg.
“We sort of have an understanding with the SEC and Finra, and it allows us to execute contracts with clients and take the first deposits,”
Currently, the services are only available for Bitcoin, Ethereum, Bitcoin Cash and Litecoin but the exchange plans to expand support to cover other digital currencies.
Another interesting revelation is that the company is in talks to offer crypto custody services to other exchanges and startups that have launched their own crypto coins.
However, for now, these services are available only available in the US and Europe but the company plans to avail them in Asia by the end of the year.
With these crypto custody services, the company is trying to diversify its revenue by coming up with more products aimed at institutional investors.
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