Coinbase Integrates Its Custody Service with OTC Desk, Conducts First Trade from ‘Cold’ Storage

News
Wed, 03/13/2019 - 19:52
Alex Dovbnya
🏁💪Coinbase is working hard to keep up with its competitors in the cryptocurrency custody race🏎️
Cover image via U.Today
Contents

Coinbase, the leading US exchange, has recently made an announcement in its blog post about merging Coinbase Custody Trust with the company OTC desk. That allowed the crypto giant to conduct the very first OTC trade directly from ‘cold’ storage.

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

Crypto Custody + OTC Trading

According to Coinbase, the tie-up is a ‘major unlock’ for their customers given that they are not able to get immediate access to liquidity. The timing is crucial in the highly volatile cryptocurrency market – it would take usually take more than 24 hours to transfer funds from cold storage to the exchange’s hot wallet. During that period of time, the price of a given asset can drastically change.

Fast and secure trading

Coinbase’s Sam McIngvale claims that the combination of its two services was a popular request with their customers whom the San Francisco-based company heard ‘loud and clear.’ Investors have a possibility to trade their funds in a snap without worrying about safety problems that are usually associated with hot wallets.

Keeping tabs on competitors

The news shouldn’t come as a surprise for anyone who’s been following the cryptocurrency custody race. As reported by U.Today, BitGo inked a partnership with Genesis Global Trading to allow its customers to buy and sell digital assets directly from cold storage.

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.


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