Cryptocurrencies have created an image for themselves as a quick money making tool and probably that’s the reason why many financial institutions are now looking forward to adding them in their portfolios. As this seems to be a potential investment plan, it has also allowed an elbow room for many business houses like a Coinbase to be a fantastic and trustworthy exchange for such kind of crypto assets.
On Friday, August 3, 2018, the San Francisco based crypto exchange wallet service, Coinbase announced its plans to add around 40 new cryptocurrencies to its custodial services. The biggest name that came out in the list of cryptocurrencies to be considered for the custodial services was XRP (Ripple) that previously had a love-hate relationship with Coinbase.
It is important to note that institutional funds are required by law to help the custodian to hold their crypto assets and keep it safe from any kind of hack and theft. For the moment, Coinbase is a custodian for just 4 cryptocurrencies, namely Bitcoin, Ethereum, Litecoin and Bitcoin Cash. It charges 0.1% fee per month along with $100,000 to set up the account. In order to use the custodian service, at least $10 Million is required for any coin or token to be added.
At this point in time, Coinbase, apart from counting the funds from its custodian services, also counts the funds from Autonomous Partners, Polychain Cap, and Multicoin Cap. Coinbase plans to aim acquire a mammoth 100 institutional customers with building custody assets worth more than $20 Billion by the end of the year 2019.
The Coinbase custodian services started on July 2, 2018, to solve the issue of SECURITY for many big financial institution and wealthy investors. The custodian service meets the SEC guidelines making the COINBASE one of the most sophisticated exchange in the world in terms of security.
Apart from considering XRP (Ripple) in its custodian services, Coinbase also plans to consider Moneto, Dash, Tezos, VeChain, Cardano Bitcoin Gold and Telegram. It should be noted that offering custodian service doesn’t guarantee services to trade on that particular exchange. Coinbase constantly stresses on the fact that for a coin/token to be tradable on their exchange, it has to pass the GDAX Digital Asset Framework.
The timing and final decision of adding the rumored 40 cryptocurrencies in the Coinbase Custody services still hasn’t been taken yet. This news came hours after Coinbase announced the listing of Ethereum Classic (ETC) on its exchange. It is rumored that Coinbase will be adding ERC20 tokens on its exchange. With Coinbase adding more and more coins, it is actually giving the crypto investors a wider choice to invest and hence making the market more and more competitive. Exciting times ahead!
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