Introduction to Coinbase Custody
As digital currencies continue to gain traction, Coinbase is taking a giant leap with its new service, Coinbase Custody. This offering is specifically tailored for institutional investors who demand trust and security for their digital assets. It’s essentially like offering a fortified vault for Bitcoin, minus the gold bars and secret passages.
Cost Structure Overview
Getting started with Coinbase Custody comes at a price—specifically, an initial setup fee of $100,000. This isn’t your average piggy bank; it’s more like an exclusive club where the entrance fee reflects the value of security and trust.
- Initial Setup Fee: $100,000
- Monthly Fee: 10 basis points on the stored coins
This model makes sure that only serious players in the game can afford to sign up. And what better way to showcase one’s commitment than by dropping a hefty amount upfront?
CEO Brian Armstrong’s Vision
In his mid-November 2017 blog post, Coinbase CEO Brian Armstrong shared his thoughts on this new service. He believes that trust is paramount for institutional investors. Without a reliable custodian, they often hesitate to dive into the crypto pool.
“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.”
Armstrong anticipates that with the launch of Coinbase Custody, institutional money will flow into the market, dramatically accelerating the adoption of digital currencies.
Gradual Rollout Plan
Now before you rush off to sign up, hold your horses! Coinbase has announced that the Custody service won’t be available immediately. Instead, eager investors will have to wait until 2018 for the gradual rollout.
Coinbase encourages interested parties to reach out for updates, which sounds almost like a digital version of waiting in line for the latest smartphone release. Try not to camp outside their virtual office!
Growing Interest in Digital Currencies
Despite waiting for Coinbase Custody, the interest in digital currencies is booming in the financial services sector. According to Autonomous NEXT, a fintech research house, over 100 hedge funds are now involved in cryptocurrency trading, with 75 percent of those funds having launched in 2017 alone. Talk about a digital currency gold rush!
The Future of Investing
As institutional players continue to dip their toes into the crypto waters, services like Coinbase Custody are crucial. They act as the stepping stones that lead to broader acceptance of digital currencies in traditional finance. With a sturdy custodian in place, who knows what heights the cryptocurrency market will reach next?
+ There are no comments
Add yours