Grayscale Investments has tapped Coinbase Custody to serve as the new security provider for its digital asset holdings, the companies announced Friday.
The custodian, which Coinbase CEO Brian Armstrong says already holds $1 billion in assets, will act as the custodian for Grayscale's single-asset and diversified investment products.
Grayscale claims to hold $2.7 billion in total assets under management, according to its most recent quarterly report, more than doubling its Q1 holdings of $1.2 billion.
Most of the assets are being transferred to Coinbase Custody from Grayscale's existing security provider, Xapo.
The private keys for Grayscale's horizen are also currently being held by the Digital Asset Custody Company, which bitcoin futures platform Bakkt acquired earlier this year.
Coinbase Custody began holding Grayscale's assets on July 29, according to a press release.
Coinbase Custody is regulated through the New York Department of Financial Services, and is a regulated fiduciary under New York's banking law.
In a statement, Coinbase Custody CEO Sam McIngvale explained that the business is "Held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry."
"Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same."
Under the agreement, Coinbase Custody will hold Grayscale's assets for three years at the outset, charging a fee based on the assets under custody.
Grayscale's $2.7 Billion in Crypto Assets Will Now Be Held by Coinbase Custody
Published on Aug 2, 2019
by Coindesk | Published on Coinage
Another mainstream company is seeking approval to invest in crypto
Anthony Scaramucci's investment firm, SkyBridge, seeks approval from the SEC to invest in crypto.
COVID-19 popularized decentralization, but blockchain may not catch on
On Nov. 9, drugmaker Pfizer announced that its COVID-19 vaccine is 90-plus percent effective, and even though it may be premature to proclaim the pandemic's end - as the virus continues to rage in the United States and Europe - once can at least speculate: Where will blockchain adoption stand when the crisis abates?
Bitcoin hits new 2020 high at $16.7K -Traders expect bigger breakout
The price of Bitcoin hit a new yearly high at $16,717 on Binance.
The next big crypto market could be fantasy sports, says Messari
As "Digitally native" ecosystems like esports continue to synergize with blockchain technology, industries like fantasy sports could be primed for mass adoption, says digital research firm Messari.