Grayscale Investments, the cryptocurrency asset manager that has designs on being the world’s largest such firm, announced over the weekend that it had switched its entire crypto holding into Coinbase Custody, Coinbase’s institutional storage service. The shift, which saw almost $3 billion worth of BTC, ETH, XRP, and more moving over to the platform, is a huge feather in the cap for Coinbase, who opened their institutional storage facility in July 2018.
— Coinbase Custody (@CoinbaseCustody) August 2, 2019
Coinbase Custody’s Biggest Investor Yet
Grayscale has joined the roster of Coinbase’s institutional customers but will be by far the biggest, adding some $2.7 billion worth of crypto to the platform’s holdings. In a statement announcing the move, Sam McIngvale, Coinbase Custody Chief Executive Officer, described why Grayscale had chosen to work together:
Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same. As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.
Institutional-Grade Offline Storage
Currently offering support for 32 assets, Coinbase Custody is an independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA, boasting the most sophisticated and reliable custody solution in the world. All digital assets are segregated, held in trust, and protected by an industry-leading insurance program. Coinbase Custody is essentially an extension of the secure, institutional-grade offline storage solution that Coinbase itself has been using since 2012 to protect its own funds, affording users “the trust, security, and performance needed by investors to trade with confidence.”