Coinbase Custody Holds Over $500 Million in Crypto Assets, a Good “Traction” Indicator for Bitcoin
Co-Founder and CEO of Coinbase, Brian Armstrong weighs in on the firm’s products and the numbers they have since achieved. On Thursday, February 21, 2019, Armstrong tweeted out Coinbase Custody, an institutional-grade service targeting related investors, has gotten “good traction so far.”
Such affirmation comes from Armstrong’s assessment of the firm’s assets. As noticed in the tweet below, Coinbase Custody carries around $500M in assets, with the numbers only seeing more growth.
This is supposedly just a fraction, considering that other products offered, i.e. Consumer and Pro, combined hold billions in assets.
Coinbase Custody (https://t.co/QjsRDElw2O) has gotten good traction so far. About $500M in assets under custody now and growing. This is in addition to the many billions of $ in crypto assets on Consumer and Pro (which have been around much longer).
— Brian Armstrong (@brian_armstrong) February 21, 2019
Said analysis is a result of a recent post shared by Fortune, where Armstrong broke down the myths associated with cryptocurrency custodies. It seems like most of the misconceptions revolve around cold storage.
The CEO believes that investors have a negative viewpoint on cold storage and that it shouldn’t be the case. Here are the main cases that Armstrong declared as myths:
- “You can’t trade crypto using funds in cold storage”
- “You can’t stake (or earn interest on) funds in cold storage”
- “Cold storage means relying on a single authorized user who could lose funds”
- “Hardware security modules are just as good as cold storage”
In addition to sharing his positive viewpoints on cold storage and depicting custody preference among crypto investors, Armstrong also shared that institutions looking to trade over the counter or desire additional income from staking, “don’t have to give up the security guarantees of cold storage.”
As for the growth of Coinbase Custody, the CEO revealed that it currently supports 14 assets and the team involved are in the process of adding more to the list. He also reached out to fellow community members to suggest assets they’d like to see offered as well.
To get a complete picture of Armstrong’s stance in favoring cold storage, check out: http://fortune.com/2019/02/21/cryptocurrency-custody-misconceptions-coinbase-ceo/