As per today’s post, the prominent exchange has already been storing over $20 billion worth of clients’ crypto over the past six years, but its new custody offering will notably be secured through an SEC-compliant and FINRA-member independent broker-dealer, Electronic Transaction Clearing (ETC).
Bloomberg reports that the cryptocurrency service provider has already accepted deposits from ten hedge funds and family offices, all within its first week of operation. Coinbase’s aspirations don’t end there, with the firm hoping to take on 100 institutional clients, managing a collective value of $5 billion in crypto assets come January.
Some were shocked that institutional clients would place such a large amount of trust on one firm, but a blog post from Sam Mcingvale, product lead at Coinbase Custody, shows that Coinbase is prepped for the incoming investment. The post read:
“Over the past six years, Coinbase has pioneered leading crypto storage techniques and is currently responsible for the custody of more than $20 billion in crypto assets. Coinbase Custody builds on this expertise to offer a brand new, independent solution for our institutional customers.”
Already over the past few days, the cryptocurrency market has witnessed an influx of new cash. Based on Coinbase’s announcement, it’s safe to assume that institutional on-boarding started last week, and the team is actively on-boarding new institutions currently.
Over the past 24 hours, Bitcoin (BTC) has enjoyed a 4.84% increase in price and much higher trading volume. The price of Bitcoin currently stands at $6,620.86 on Coinbase.
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