In a piece of highly welcome news, Coinbase Custody has officially been opened to institutional investors after the platform successfully facilitated its first financial transaction last week. As per an official blog post on the company’s website, Coinbase hopes to onboard a growing list of clients in the coming few weeks. Potential investors include crypto hedge funds, exchanges, and ICO teams.
When looked at objectively, one can see that the new Custody platform provides customers with a combination of Coinbase’s propriety cold storage services, an institutional-grade broker-dealer setup and a comprehensive client coverage program.
What is the platform offering exactly?
As mentioned previously, Coinbase Custody offers institutional investors with an independent platform that has been rigorously tested for its overall security and cryptographic design review. In addition to this, the company plans to make sure that the platform undergoes regular third-party examinations– so as to ensure long-term security.
Some of the current features that Custody comes packed with include:
- On-chain segregation of crypto assets
- Split, offline private keys that require a quorum of geographically distributed agents to use cryptographic hardware to sign transactions
- Multiple layers of security
- Robust cold storage auditing and reporting
Not only that, Coinbase Custody is also leveraging the expertise of Electronic Transaction Clearing (ETC) — an SEC-registered broker-dealer and FINRA member — to help ensure the validity of all native transactions.
What’s planned for the future?
According to the Coinbase backend team, after having successfully launched their platform across Europe and America, they now aim to bring their services to Asia in the coming few months. Additionally, if things go as scheduled, the company also plans on providing its customers with added features like:
- Support for additional cryptocurrencies.
- More flexible access to one’s funds
- Integration of segregated hot wallets and scheduled withdrawals.
As the cryptoverse continues to evolve and mature, steps such as these can ensure that this sector is able to keep up with the ever-changing needs and demands of this burgeoning market. However, only time will tell whether this project eventually turns out to be a success or not.
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