What is Coinbase Custody?

So, Coinbase Custody has been thrown around a lot lately and some people on my channel have asked me what it actually is. Is it an ETF, a hedge fund, or something else? It is not any of those things. It is simply a safe and secure storage place for institutions to store their cryptocurrency. We all know it is difficult to truly store large amounts of crypto everywhere because of hacking and problems with exchanges. That is one of the reasons institutional investors are slow to invest in cryptocurrency. However with Coinbase announcing that it now can act as a custodian for institutional investors(I’m assuming with insurance), that removes one of the big hurdles for them to pour some money into crypto. Coinbase will store their funds in cold storage for safety. Coinbase is also regulated and partnered with ETC(Electronic Transaction Clearing) which is an SEC registered broker-dealer and FINRA member that is subject to independent audits. This gives Coinbase a lot more credibility than other exchanges or cryptocurrency companies. Hopefully, this removes one huge barrier than can usher new money into the market.

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