Cryptocurrency wallet and exchange startup Coinbase is launching a new storage service aimed specifically at institutional investors.
Coinbase Custody, CEO Brian Armstrong wrote in a new blog post published today, is aimed at those who have a minimum of $10 million in deposits. In order to utilize the service, users would need to pay the initial $100,000 set-up fee, along with a 10 basis point fee per-month on the coins stored within the system (although these prices could change over time, Coinbase added).
The idea, according to the company, is to appeal to an institutional audience that harbors concerns over the security of wholly digitized assets.
Armstrong wrote:
“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely. his is why I’m excited to announce Coinbase Custody. The next step to accelerating the world’s adoption of digital currencies is to unlock the institutional money preparing to enter the space.”
Coinbase’s service isn’t opening for business immediately, however. The company said that it would begin “gradually rolling out access to our early access product in 2018,” inviting prospective clients to get in touch.
That the firm would move to create such a service is perhaps unsurprising, given the rising interest in cryptocurrencies from institutional investors, as well as the proliferation of hedge funds focused specifically on digital assets. Indeed, recent reports and statements suggest that major hedge funds are eyeing the market, though how that interest translates into actual investments remains to be seen.
Founded in 2012, Coinbase has raised more than $200 million in funding to date, including a $100 million Series D round closed in August.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.
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