Coinbase Custody Holds $1.3B in Assets Under Custody, Expects to Hit $2B ‘Soon’

Coinbase Custody Holds $1.3B in Assets Under Custody, Expects to Hit $2B ‘Soon’

Coinbase Custody revealed that it holds $1.3 billion in assets under custody (AUC) and the firm expects to hit $2 billion AUC soon in a Twitter thread published on June 13.

In a series of tweets, what is evidently the official Coinbase Custody Twitter account reported that last week the company’s CEO, Sam McIngvale, and its chief information security officer, Philip Martin, visited the United Kingdom. The purpose of the visit was reportedly “to discuss the institutional cryptoeconomy with a range of prospects and clients.”

During the meeting, the firm’s representatives argued that, while many believe that there are no institutional-grade offerings in the cryptocurrency space, Coinbase Custody is in fact such an offering. The firm’s representatives stated that the company is insured, regulated and secure custodian. The thread also specifies:

“We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there. […] Coinbase Custody services over 90 clients. Of those, approximately 40% are outside of the US.”

Lastly, the tweet also claims that — as cryptocurrencies mature as an asset class — financial hubs such as London are becoming centers for crypto innovation.

During an on-stage discussion at Consensus in mid-May, Brian Armstrong, CEO of Coinbase, said that its custody service had already received $1 billion in assets under management.

As Cointelegraph reported in March, the United States Securities and Exchange Commission is soliciting industry input as it potentially reconsiders existing custody rules in specific cases of digital asset trading and settlement.

In April, Hong Kong trading and asset management firm BC Group announced that it is launching an insured custody service for cryptocurrencies.

Published at Sat, 15 Jun 2019 17:54:00 +0000