Coinbase Custody Officially Ready To Accept Institutional Investors

Coinbase Custody has announced that they are open for institutional investing.  This is big news on the cryptocurrency front.

This news is actually blowing up the internet, video, and social media platforms.  The question now becomes: Will institutional investors actually use it?

The word so far is that deposits have already been coming into the Coinbase Custody platform.

As displayed on the Coinbase Custody website, it costs $100,000 for the setup fee and a minimum of $10,000,000 to get started.

So this is truly for institutional investors and/or accredited individual investors with very high capitalization.

According to The Coinbase Blog:

Last week, Coinbase Custody accepted its first deposit. Today, we’re proud to announce that we’re officially open for business. Over the coming weeks, we’ll continue on-boarding a set of world-class clients that includes leading crypto hedge funds, exchanges and ICO teams.

Coinbase Custody’s mission is to make digital currency investment accessible to every eligible financial institution and hedge fund in the world. We’ll achieve this by striving to become the most trusted and easiest-to-use crypto custody service available. Coinbase Custody is a combination of Coinbase’s battle-tested cold storage for crypto assets, an institutional-grade broker-dealer and its reporting services, and a comprehensive client coverage program.

And Bloomberg has reported 10 hedge funds have already come into the platform:

Coinbase Inc., one of the world’s largest cryptocurrency exchanges, said 10 hedge funds and family offices have begun using the custody service it debuted last week that seeks to safeguard digital tokens in a manner similar to traditional securities.  

The company aims to have 100 large institutional customers by the end of the year with as much as $5 billion in assets under management, Sam McIngvale, who is leading the effort for San Francisco-based Coinbase, said in a phone interview. Coinbase said it already stores more than $20 billion in crypto assets for clients such as retail investors.

So the proverbial “line in the sand” has been drawn and institutional investors are crossing over into what was previously unknown territory.

Obviously, things are changing in the world of high finance. As for us small individual retail investors, the safest way to participate is to open a free account on the original Coinbase platform.

Then, safeguard your crypto investments by using an offline wallet like Trezor.  This device, you can get for $99 and is a small fee to pay for total protection of your cryptocurrency assets.