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Coinbase Custody Service Is Considering Storage for XRP and More Digital Assets

The Coinbase Custody storage service made an announcement on the 3rd of August, that it was exploring a range of new digital assets. They however made it clear that they were not considering the assets for trading. The announcement clearly stated the following:

Coinbase Custody is exploring the addition of many existing and forthcoming crypto assets for storage only, and will be working to add them as quickly and safely as possible. At this time, we have not yet considered these assets for trading. We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets.

The new digital assets being explored are 37 in total and as follows:

  1. Cardano (ADA)
  2. ZCash (ZEC)
  3. Stellar (XLM)
  4. XRP
  5. EOS
  6. Monero (XMR)
  7. VeChain (VEN)
  8. Tezos (XTZ)
  9. Qtum (QTUM)
  10. Bytecoin (BCN)
  11. Bitcoin Gold (BTG)
  12. Decred (DCR)
  13. Bithsares (BTS)
  14. ICON (ICX)
  15. Ontology (ONT)
  16. STEEM
  17. Dogecoin (DOGE)
  18. SiaCoin (SC)
  19. Wanchain (WAN)
  20. Nano (NANO)
  21. Telegram
  22. Filecoin
  23. TaTaTu
  24. Dfinity
  25. Blockstack
  26. Basis
  27. NEO
  28. DASH
  29. NEM (XEM)
  30. TrustToken
  31. Hedera HashGraph
  32. TokenCard
  33. Polkadot
  34. Kik
  35. Props
  36. Origin
  37. Foam

The team at Coinbase Custody went on to explain to their users that they might see public-facing APIs and other signs that indicate they are conducting engineering works to support these new digital assets. This however will not be an indication of 100% commitment of adding the digital assets and they will provide updates to their customers about the process and what to expect via their Twitter page.

Coinbase Custody is a storage service for institutional investors that provides a secure storage for crypto assets for institutions in both the US and Europe. They also hope to expand to Asia by the end of the year.

Coinbase has pioneered digital storage for the last 6 years and has a track record of being in custody of up to $20 Billion in crypto assets. This experience and expertise in the industry will allow the crypto exchange to offer the following additional unique features for its clients:

  • 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

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Coinbase Custody Service Secures Major Institutional Investor Worth $20 Billion

Earlier this month, the popular cryptocurrency exchange known as Coinbase, announced a new digital asset storage service for institutional investors and high net individuals. This new service by the exchange was given the name of Coinbase Custody and the announcement was made via the exchange’s twitter page as well as its official blog. The tweet announcing the service can be seen below:

It is with this background that news has surfaced of the Custody service attracting a major hedge fund that is valued at over $20 Billion. According to Business Insider and CCN.com, the name of the hedge fund has not been disclosed by the unnamed sources who provided the information. The team at Coinbase is also planning on securing more hedge funds to sing up for the Coinbase Custody storage service. Coinbase has also been reported of planning to offer margin finance as early as by the end of the year.

Greenwich Associates’ consultant Richard Johnson, had this to say about the future of Coinbase:

Coinbase is pursuing a lot of different initiatives that make sense and take it closer to or are more similar to traditional finance: custody, financing, lending, security tokens, and the institutional portal. They have the resources to fund them and will surely have some successes.

After the release of the Coinbase Custody service, Ethereum World News had done its own analysis on the possible outcomes of Institutional Investors and high net individuals getting into cryptocurrency investing due to the secure storage available at Coinbase.

Three possible scenarios on the future of the Crypto-markets were explored:

  1. The Coinbase Custody service becomes a gateway for the institutional investors and high net individuals to get into crypto. This means that the anticipated ‘big money’ from Wallstreet will finally make it into the crypto-markets
  2. All the digital assets that Coinbase currently supports (BTC, ETH, ETC, LTC and BCH) will probably skyrocket in value leading to a possible overall crypto bull run as the one witnessed last December into January this year
  3. Coinbase probably is gunning for a banking or brokerage license by aligning itself to the regulation of SEC by listing only what has been given the go ahead by the government authority

In conclusion, the news that Coinbase has managed to attract a $20 Billion worth hedge fund is good news for not only the crypto-exchange, but for the entire crypto markets for this is a sign of more institutional investors and high net individuals getting into crypto investing.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Cardano (ADA), BAT, Stellar (XLM), ZCash and ZRX Continue to Gain Amidst Coinbase News

In a tweet just yesterday, popular American cryptocurrency exchange known as Coinbase, announced that it was exploring the possibilities of adding the following 5 cryptocurrencies on its platform:

  • Cardano (ADA)
  • Basic Attention Token (BAT)
  • Stellar (XLM)
  • ZCash (ZEC)
  • Ox (ZRX)

The team at Coinbase added that:

We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets.

They also cautioned that the listing of the 5 new digital assets was not a guarantee:

Unlike the ongoing process of adding Ethereum Classic, which is technically very similar to Ethereum, these assets will require additional exploratory work and we cannot guarantee they will be listed for trading.

What then happened, is that each of this digital assets soared in the markets by the double digits. Crypto-traders loved the fact that Coinbase had even mentioned the possibility of adding new assets on the platform.

The screenshot below from CCN.com shows the performance of the digital assets right after the Coinbase announcement.

Market reaction after the Coinbase announcement. Source, CCN.com

Looking once again at the 5 digital assets, we find that Stellar (XLM) is up 6.17% and is trading at $0.198. Cardano (ADA) is trading at $0.136 and up 5.59% in the last 24 hours. ZCash (ZEC) is currently up 9.32% and trading at $172. Ox (ZRX) is showing impressive gains at 15.84% and trading at $0.95. Basic Attention Token (BAT) has not been left behind and is currently up 15.27% in the last 24 hours and trading at $0.30.

Current market performance. Source, coinmarketcap.com

The performance of these 5 digital assets has shown that the crypto-markets can still get exciting despite the bearish mood. The total market capitalization is currently at $247 Billion and Bitcoin (BTC) is trading at $6,233. However, many crypto traders are optimistic that the tide will change with the existing Bitcoin ETF filing by the CBOE still under review by the SEC. If the SEC approves the ETFs, the crypto-markets will once again be alive. South Korea has already given exchanges in the country, the go ahead to continue trading after meeting new regulatory requirements.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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This Traditional Stock Exchange is Getting Into Crypto Trading 100%

Along this exciting journey of cryptocurrencies, crypto-markets and blockchain technology, we have seen traditional banking institutions embrace blockchain based payments solutions such as those offered by Ripple, as well as some banks opting to patent their own blockchain ideas. There has also been the case of Bitcoin (BTC) Futures contracts being offered by the CME (Chicago Mercantile Exchange) Group and the CBOE (Chicago Board Options Exchange). The latter exchange has even filed for the listing of Bitcoin ETFs as securities with the SEC.

This trend of traditional stock exchange firms embracing crypto trading will continue to expand as more and more institutional investors and high net individuals start getting interested in cryptocurrencies as a new form of investing.

The newest addition to the list of traditional stock exchanges doing so, is Swiss based SIX. The Switzerland Stock exchange, which is owned and managed by SIX, is currently building a fully integrated trading, settlement and custody infrastructure for digital assets. SIX is regulated as an operator of Financial Market Infrastructure (FMI) by Swiss Authorities, FINMA (The Swiss Financial Market Supervisory Authority) and the Swiss National Bank.

The new trading service will be based on Distributed Ledger Technology and its implementation is poised to provide a bridge between traditional investing and that of the crypto-markets for its clients.

Thomas Zeeb, Head of Securities & Exchanges at SIX, is quoted as saying the following with regards to the storage of digital assets:

The challenge [in crypto] is less in the trading of assets but rather in the custody and asset servicing, including asset safety. Do you adopt a model with many sub-custodians, including inefficient interfaces and with inherent risks, or do you go with a recognized and regulated infrastructure provider who provides all steps of the chain in an integrated and secure model?  We believe that the latter has significant value. As the stock exchange infrastructure for Switzerland, we know what it takes to build and run mission-critical and scalable, systemically important services.

Mr. Zeeb’s comment echo what prompted Coinbase to start their Coinbase Custody service to cater for the cold storage of high volume cryptocurrencies held by institutional investors and high net individuals.

Jos Dijsselhof, CEO  at SIX, would add that:

This is the beginning of a new era for capital markets infrastructures. For us it is abundantly clear that much of what is going on in the digital space is here to stay and will define the future of our industry. The financial industry now needs to bridge the gap between traditional financial services and digital communities. This is the role that we at SIX can play.

In a nutshell, traditional stock exchanges are constantly changing the products and services they offer their clients to include the new digital assets known as cryptocurrencies. It is no wonder many crypto-traders believe that the approval of Bitcoin ETFs by the SEC, will be the beginning of exciting and profitable times in the crypto-markets, as institutional investors and high net individuals embrace cryptocurrencies 100%.

Disclaimer: This article is not meant to give financial advice. It is an opinion piece. The opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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Coinbase Custody Officially Launched, Offering a Gateway For Institutional Investors into Crypto

One of the largest challenges of any institutional investor has just been solved by Coinbase. This challenge is where and how does such an institution – such as a hedge fund – store its millions of dollars worth of cryptocurrencies without fear of the funds being hacked and stolen as is the case with the numerous exchanges that have fallen victim to cyber crooks.

Here is where Coinbase comes in. The crypto exchange now is offering what it calls Coinbase Custody: a new storage service for institutional investors. The exchange made the announcement via twitter as follows:

Further investigating the new service, we find that Coinbase Custody’s mission is to make cryptocurrency investment accessible to every eligible financial institution and hedge fund around the world. Coinbase intends on being the most trusted and easiest-to-use crypto custody service available. This service will include cold storage of the clients digital assets as well as an institutional-grade broker-dealer and its reporting services. There is also a comprehensive client storage program.

Coinbase has pioneered digital storage for the last 6 years and has a track record of being in custody of up to $20 Billion in crypto assets. This experience and expertise in the industry will allow the crypto exchange to offer the following additional unique features for its clients:

  • 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

Coinbase’s CEO, Brain Armstrong, is quoted as saying the following back in December when Coinbase announced its plans for the Custody services:

Over 100 hedge funds have been created in the past year exclusively to trade digital currency. An even greater number of traditional institutional investors are starting to look at trading digital assets (including family offices, sovereign wealth funds, traditional hedge funds, and more).

He would later add that the number one concern of these institutions with regards to cryptocurrencies was guaranteed security.

When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.

So what is next for Coinbase?

The exchange plans on doing the following moving forward:

  • Supporting more crypto assets other than BTC, ETH, LTC, ETC and BCH
  • Addition of flexible access to funds in the form of secure, segregated hot wallets and scheduled withdrawals for maximum flexibility
  • Crypto-first features such as proof of stake and distributed governance

In conclusion, Coinbase is doing all the right things to attract the much needed institutional investors that have been predicted to be capable of bringing in trillions of dollars in to the crypto markets. Perhaps it is true that today, June 2nd, is the official kick off of the 2018 Crypto Bullish season!

[Photo source, blog.coinbase.com]

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Coinbase's New Custody Service Is Now Live

Coinbase’s institutional product has begun accepting deposits, the exchange announced Monday.

The exchange’s new Coinbase Custody sevice, aimed at institutional hedge funds and other clients who can deposit a minimum of $10 million, accepted its first deposit last week, the company announced on Twitter. In addition, the new service is now live for all customers.

Further, Coinbase currently holds more than $20 billion in crypto assets, the exchange said Monday. The company hopes to bring in another $10 billion with Custody.

First announced in November 2017, Coinbase Custody’s clients will pay $100,000 as a set-up fee and a 10 basis point fee-per-month on the assets being held, as previously reported by CoinDesk.

The product was formally launched in May, when Coinbase further discussed its plans to work with a U.S. Securities and Exchange Commission-regulated broker-dealer. The firm went one step further earlier last month, when it announced it was in the process of acquiring a broker-dealer license, an alternative trading system license and an investment advisor license, as previously reported by CoinDesk.

Should the licenses be approved, Coinbase will be able to begin offering securities on top of its current products.

At present Coinbase Custody is open to clients in the U.S. and Europe. While no firm timeline was announced, Coinbase said it hopes to open up to clients in Asia by the end of 2018.

Safety deposit box image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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Coinbase Rolls Out Crypto Custody Product for Institutions

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.

Vault image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.