Coinbase Announced the Launch of Custody Service
Security framework is one of the key components in the cryptocurrency market which has now become the top priority for crypto investors. On account of recent data breach and exchange hack, major market players like Coinbase are stepping up to upgrade their service security.
On July 02, 2018, Coinbase Exchange has officially announced the launch of “Coinbase Custody”. It says “we’re officially open for business”. Coinbase details its mission as follows;
“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.”
With an aim to brand itself as the best consumer-centric cryptocurrency service, Coinbase custody ensures secure storage for institutions across the US and Europe. In addition, the firm is also planning to serve this service across Asia as well.
Coinbase’s custody will be onboarding crypto hedge funds, ICO projects, and exchanges over the coming weeks. It will currently support BTC, ETH, LTC, and BCH. Nonetheless, the reason behind new announcement was to open the secure floodgates for institutional money, aiming to rule on the crypto market.
What is Coinbase Custody?
It is a security and a custodian service by Coinbase that facilitate secured storage of digital assets for institutional investors’ i.e Exchanges, ICOs and Crypto hedge funds. The Coinbase custody is regulated and associated with ETC (Electronic Transaction Clearing) as a broker-dealer and a client coverage program. ETC is regulated with the Securities and Exchange Commission (SEC) and a FINRA (Financial Regulatory Authority) member that directs financial reporting and independent audits.
Coinbase Custodian and Funds Security
The Custodian service by Coinbase was first announced back in November 2017 by prioritizing “Security” as a concern of institutional investors. According to the latest announcement, Coinbase is already securing more than $20billion of cryptos.
The solution is featuring highest security measures such as on-chain segregation of crypto assets, offline private keys, and multi-sig that require signing transaction under cryptographic software. It also employs geographically distributed transaction protection, robust cold storage auditing, and reporting. Moreover, Coinbase exchange will also add secure, segregated hot wallets and upgrade withdrawal flexibility. Additionally, it’s quite interesting that Coinbase aims to bring proof of ecosystem and distributed governance to the market.