Altcoin News: Coinbase Custody Holds over $500 Million in Cryptocurrency Assets

February 22, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

The head of Coinbase Exchange, Brian Armstrong, said that the Coinbase Custody custodial service ‘has gotten good traction’ and holds more than $500 million in digital assets.

According to the CEO of one of the world’s largest cryptocurrency exchanges, such attention to the storage service of cryptocurrencies and digital assets shows that institutional clients are more and more interested in the cryptocurrency industry.

Coinbase Custody offers a storage service for 14 different cryptocurrencies, and soon it is planned to add support for another 37 assets. Armstrong stressed that for institutional clients who wish to trade in over-the-counter platforms, it is not necessary to withdraw funds from a cold wallet and put them at risk. Funds are transferred only after the transaction.

Armstrong also said that when storing funds in a custodial service, the owner of the assets remains many ways to extract profits from them. Do not be afraid that only one person has access to a cold wallet. A good service will never give access to customer funds to one person — instead, several keys are used, and the larger the transaction, the greater the number of employees involved.

The head of Coinbase noted that although hardware wallets are very good in terms of asset protection, and Armstrong himself is very fond of these solutions, they still do not reach the cold storage in terms of security. When a wallet is completely disconnected from the Internet, attackers have no way to access it.

Note that the approval of the New York State Financial Services Department (NYDFS) for the creation of the custodial unit Coinbase Custody Trust Company LLC was received in October last year.

Author: Marko Vidrih