The amount of assets managed by Coinbase Custody, Coinbase’s stand-alone custody solution, has recently been revealed. What’s more, Coinbase Custody currently manages a whopping $1.3 billion of crypto assets for companies.
Coinbase Custody manages $1.3 billion, “soon” $2 billion
This news comes from a series of tweets reportedly made by Coinbase Custody’s official Twitter account. A number of crypto news outlets readily picked up on this news, which showcases Coinbase Custody’s explosive growth.
According to the tweets shared by the custody firm, Coinbase Custody currently holds a massive $1.3 billion worth of crypto funds under management. These so-called assets under custody (AUC) are also predicted to continue to grow.
In fact, the tweets also hinted that Coinbase Custody’s assets under custody could continue to climb to $2 billion “soon”. Coinbase Custody also revealed that there are no plans of slowing down this growth:
“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.”
This came as several ranking members of Coinbase Custody’s executive team recently visited the United Kingdom. Specifically, the firm’s CEO – Sam McIngvale – and its chief information security officer – Philip Martin – went to the UK to discuss “the institutional cryptoeconomy with a range of prospects and clients”.
Institutional crypto solutions needed for greater institutional adoption
Furthermore, the pair is said to have argued the need for Coinbase Custody. In fact, although many commenters argue that there is no such things as an institutional-grade custody solution for cryptocurrencies, the two are said to have argued that Coinbase Custody is exactly that.
What’s more, Coinbase Custody is said to have pointed out that it is “insured, regulated and [a] secure custodian” for cryptos. Moreover, this visit to London was no coincidence. Observers have suggested that as cryptocurrencies mature as an asset class, financial hubs – like London – will become more central to the success of cryptocurrency ventures.
Speaking at Consensus in May, Coinbase’s CEO Brian Armstrong noted that Coinbase Custody was handling around $1 billion. This means that Coinbase Custody’s business has grown to manage around a third of a billion more funds than just a month ago.
An institutional solution for crypto custody is seen as one of the major barriers for increased cryptocurrency adoption. As such, Coinbase Custody will likely want to showcase its solutions for that end.
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.