While it has been announced for some time now, Coinbase, the world’s most well-known cryptocurrency exchange for retail investors, is officially launching their Coinbase Custody product geared toward providing large-scale, high-wealth institutional investors a safe storage option for large cryptocurrency investments.
In addition to a monthly fee, Coinbase Custody requires users to pay a one-time setup fee of $100,000 and they must keep a balance of $10 million minimum in deposits across the various cryptocurrencies Coinbase Custody offers.
Coinbase has previously stated that Coinbase Custody will offer custodial services for any of the cryptocurrencies available on its GDAX platform, in addition to potentially offering additional cryptocurrencies not found on GDAX or other Coinbase products. Coinbase Custody will also support ERC20 tokens, according to previous reports by the company.
Coinbase said in a statement:
"We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available.”
Coinbase says that by catering to institutions they can bring "new capital, greater awareness and additional infrastructure to the space,” adding that “this movement requires institutional grade products and services, something Coinbase has been developing with leading institutions and which we are proud to formally launch today.”
As part of the announcement, Coinbase also revealed that they would be partnering with a US Securities and Exchange Commission-regulated broker to combine their secure custodial services with third-party auditing and financial reporting validation.
Coinbase Custody is part of a suite of institutional products Coinbase is launching. In addition to Coinbase Custody, Coinbase is also launching Coinbase Markets, which the firm calls a “centralized pool of liquidity for all Coinbase products,” and Coinbase Prime, “a new platform designed specifically to provide a suite of tools and services that institutional investors rely on when trading cryptocurrency.”