2018 is certainly looking like the year cryptocurrencies begin to go mainstream. We’ve just recently reported about the German Bank that has successfully used Bitcoin to bypass SWIFT, it was just yesterday that we reported HSBC used the blockchain for the first trade finance deal, and today cryptocurrency exchange Coinbase announced it is formally launching Coinbase Custody, a product aimed at aiding institutional cryptocurrency adoption.
Early adopters have been dreaming of prices “going to the moon” when institutional money enters the space. It is not difficult to see that the infrastructure needed to make it happen is being implemented now.
Coinbase Custody is part of suite of institutional products being launched, according to their press release. Coinbase explained why it chose to launch the product in the current environment, saying:
The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space. In fact, in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency. Some of the world’s largest financial institutions have also recently announced their plans to begin trading cryptocurrency.
At Coinbase, we welcome these developments as they help accelerate the world’s adoption of cryptocurrency by bringing new capital, greater awareness, and additional infrastructure to the space. 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.
Coinbase Custody to Launch in Partnership with SEC-regulated Broker-Dealer
We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available. In partnership with an SEC-regulated broker-dealer, Coinbase Custody is proud to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer.