San Francisco-based Coinbase has launched Coinbase Custody, a service aimed at the estimated $10bn of institutional money that could be available for digital asset trading. According to co-founder Brian Armstrong, sovereign wealth funds, family offices and traditional hedge funds are put off by the absence of a digital asset custodian, prompting the creation of Coinbase Custody. The company is also working with banks on its own service, which will allow users to buy bitcoin directly from their bank account. Coinbase said it already has cryptocurrencies worth at least $9bn stored on behalf of customers.
San Francisco-based Coinbase has launched Coinbase Custody, a service aimed at the estimated $10bn of institutional money that could be available for digital asset trading. According to co-founder Brian Armstrong, sovereign wealth funds, family offices and traditional hedge funds are put off by the absence of a digital asset custodian, prompting the creation of Coinbase Custody. He said the service – only available to institutional investors with a minimum of $10m – would fulfil requirements, including strict financial controls and being a regulated digital currency custodian. Coinbase said it already has cryptocurrencies worth at least $9bn stored on behalf of customers.