Coinbase Custody Already Holding $1 Billion in Crypto
Coinbase Custody has so far received over $1 billion in crypto assets under management, Coinbase CEO Brian Armstrong revealed on Wednesday, May 15.
Armstrong said this while speaking at Consensus, during one of the on-stage discussions as reported by Coindesk.
Paul Vigna, a Wall Street reporter who was the panel’s moderator, wanted to know Armstrong’s view on institutions investing in the digital asset industry.
In his response, the Coinbase chief noted that uptake was great, giving Coinbase custody as an example. According to him, in the 12 months, since the U.S. exchange launched the service, it has custody of $1 billion in assets.
Notably, about 70 institutional investors are said to have signed up for the custody service within the last year. And in Armstrong’s view, more investors are likely to stream in from across the globe as the sector experiences rapid growth.
He explained that most of the investors prefer to have their funds being active as they are held in custody. The greater number of these institutions would like to see their funds used in staking services, voting and in on-chain network governance.
Bitcoin (BTC) is the most popular crypto asset in the space, with most institutional investors interested in it.
However, Armstrong says that although bitcoin remains the top choice, there is growing interest in altcoins. That explains Coinbase’s e decision to increase the number of cryptocurrencies, currently offering institutional investors access to up to 30 altcoins.
At the same time, Armstrong revealed that the firm’s trading platform Coinbase Pro- which is targeted towards advanced traders- has seen increased activity. Currently, institutions account for over 60 percent of the platform’s trading volume.
Coinbase has also considered self-custody solutions and has reportedly been in discussion with StarkWare, Israeli-based blockchain privacy and scalability startup.
Coinbase Custody’s first debut as a solution for institutional investors was in July 2018.
At the time, Coinbase revealed its main target was to allow big-money investors find it easy to be part of the cryptocurrency trading system. The exchange hoped the service would allow these clients to participate via avenues like proof of stake.
On May 14, the exchange announced that it would be expanding its services to more locations around the globe. The firm revealed that the expansion would see its services available in a further 50 jurisdictions, including South Africa, Brazil, and Taiwan.
Additionally, trading of the USD Coin (USDC) is now available to the exchange’s clients in 85 jurisdictions around the world.
On Tuesday, crypto custody firm BitGo also announced that it had launched a new service that allowed its clients to complete off-chain clearance and settlements. The service helps reduce counterparty risk among other issues that affect institutional investors.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.