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.
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.