Digital currency wallet and exchange startup company Coinbase is scheduled to introduce its new Coinbase Custody storage service that is specifically designed for institutional investors. To use the service, a customer needs to pay the initial set-up fee of $100,000, along with a 10 basis point fee per month on the coins stored in the system.
In his new blog post in mid-November 2017, Coinbase Chief Executive Officer (CEO), Brian Armstrong, said that the service aims to satisfy the need of investors of a trusted digital asset custodian for the secure storage of their funds.
He also claimed that the entry of institutional investors in the cryptocurrency market will facilitate the mainstream adoption of digital currencies.
“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely. This is why I’m excited to announce Coinbase Custody. The next step to accelerating the world’s adoption of digital currencies is to unlock the institutional money preparing to enter the space.”
Coinbase’s plan on Coinbase Custody
According to Coinbase, the new storage service will not be immediately available to customers. It announced that access to the service will be gradually offered to interested customers in 2018.
The company also urged its prospective clients to get in touch if they want to know the latest developments about the service.
Latest virtual currency developments in the financial services market
Meanwhile, there is a sustained interest in digital currencies in the financial services industry.
Based on new data from financial technology (fintech) research house Autonomous NEXT, there were already more than 100 hedge funds that are involved in the trading of cryptocurrencies. More than 75 percent of these funds were launched in 2017.