Coinbase Custody Now Holds More Than $500 Mln in Digital Assets

  • Alex Dovbnya
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    Brian Armstrong claims that Coinbase Custody ‘has gotten good traction’. This is a major sign that institutional adoption is growing

Coinbase Custody Now Holds More Than $500 Mln in Digital Assets

Brian Armstrong, the CEO of the $8 bln exchange Coinbase, has decided to bring more clarity to the table by explaining cryptocurrency custody in a recent Fortune article. Meanwhile, according to Armstrong, Coinbase Custody already stores more than $500 mln worth of cryptocurrencies.

Debunking the crypto custody myths

In the article entitled Busting Myths About Cryptocurrency Custody, the Coinbase CEO sheds light on the major misconceptions that pertain to different types of storages. Particularly, he mentions that their customers actually can get engaged in the over-the-counter (OTC) trading or earn interest if their funds are stored in cold wallets. In the light of the QuadrigaCX disaster, Armstrong emphasized that multiple parties hold private keys to their wallets, and these parties are required to consent before a certain transaction is performed.

U.Today reminds its readers that Coinbase is super-cautious about the customers’ security, going as far as storing their private keys in a remote Faraday tent.

$500 mln under custody

Coinbase Custody, which was rolled out on July 2, ‘has gotten good traction’, according to Armstrong. The offshoot of one of the biggest crypto startups in the world now has $500 mln under custody with 14 available digital assets. Now, Coinbase is asking its customers what assets should be listed next. Back in August, the company announced its plans to list 37 new cryptocurrency assets.   

Notably, Coinbase Custody added XRP back in November, but the popular remittance and settlement token still hasn’t been listed on the exchange itself.

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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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