Coinbase, a well-renowned and trusted exchange has recently added 10 clients who are now using its newly released custodial service. The customer base that includes home offices and hedge funds can now keep their digital assets in safety, as they would keep their traditional assets.
In order to comply with the regulations, the platform has claimed that prior to the launch of its new service, Coinbase had a talk with the concerned authorities – Securities and Exchange Commission [SEC] and Financial Industry Regulatory Authority [Finra], and hence, are aligned with the law.
This cooperation between Coinbase and the two authorities was explained by a company official. He also mentioned a partnership with the SEC in a commonly served service. The official said:
“We sort of have an understanding with the SEC and Finra, and it allows us to execute contracts with clients and take the first deposits.”
The annual goal of Coinbase is set at 100 big institutions to a form a concrete customer base, with the management of an estimated $5 billion worth of digital assets.
The company has also been planning to convert startups and small exchanges that have built their own crypto coin, as a roadmap to expansion. Currently, the custodial service has only been activated for big coins like Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. With more cryptocurrencies on board, Coinbase is targeting locations other than Europe and the U.S.A, and are likely to move towards Asia.
The security of the custodial service is taken care of via cold wallets to prevent any hacking incidents, that have been lately attacking crypto exchanges. Despite this setting, the customers will be able to move their assets from cold wallet to hot wallet for the purpose of trading.
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