Coinbase Custody Targets $10 Billion in Institutional Funds for Bitcoin Investment

Last Thursday, Coinbase CEO, Brian Armstrong, officially introduced Coinbase Custody, a platform targeted at institutional investors. The new product is intended to be ultra-secure. According to Armstrong, Coinbase currently holds $9 billion in user funds in various cryptocurrencies including Bitcoin. Coinbase Custody is exclusively for institutional investors with at least $10 mln on deposit.
Armstrong further emphasized that the finance market currently has over $10 billion in institutional money that has been sitting on the sidelines. Coinbase believes these investors want to purchase digital currency but have been waiting for a safe way to buy and hold it. Armstrong wrote:
“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). By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.”