Coinbase Launches New Company for Institutional Investors in Bitcoin
California Coinbase announced the launch of a new company, the main purpose of which will be to assist institutional investors in the safe storage of digital assets. The new company was named Coinbase Custody.
As the head of the company Bryan Armstrong writes, over 100 hedge funds targeting digital currencies have been created in the past year alone, and even more traditional institutional investors are beginning to view digital assets as one of the options. In addition to traditional hedge funds, it also deals with family funds, capital saving funds and other types of conservation and asset growth.
"According to some estimates, today it is about 10 billion dollars in the form of institutional money, which is waiting for its time to be invested in the digital currency," insists Brian Armstrong.
Among the basic requirements that must be met by institutional clients, Coinbase calls:
Strict financial control
Specially selected customer representatives and telephone support
The existence of agreements on the volume of transfers of funds
Acting within the framework of the legal base of the custodian of funds
Multi-user accounts with separate access rights
Support for a wide range of digital assets and currencies
Insurance of funds (in some cases)
According to Bryan Armstrong, Coinbase meets all the requirements for launching such a product.
"We already hold digital assets of customers for billions of dollars and serve thousands of organizations through the GDAX exchange. We received $ 216 million of venture investments from organizations such as NYSE / ICE, USAA, BBVA, Westpac and MUFG, and our offices in New York, London and San Francisco employ approximately 200 employees with in-depth knowledge of the industry, "said Coinbase .
The statement notes that in the coming years Coinbase Custody will help significantly increase the flow of institutional money into digital currencies.
The product will be gradually introduced throughout 2018 and will be available only to investors willing to make a minimum purchase of $ 10 million.
Recall, in August this year, Coinbase was the first in the ecosystem of bitcoin unicorn company. This became possible after the company closed the $ 100 million round of the Series D financing, after which its investment estimate exceeded one billion dollars.