Solana (SOL) Added to Coinbase Custody; Cue in the Institutions
Solana has announced a partnership with Coinbase Custody, a registered fiduciary under the New York State Banking Law.
Over the past few weeks, the Solana Foundation has been working with the Coinbase team to integrate the Solana blockchain.
“This partnership closely aligns with our mission to bring speed and security to decentralized finance,” said Solana team.
Now, in addition to non-custodial wallet SolFlare and TrustWallet, investors get another option to store SOL in the offline cold storage system of Coinbase Custody.
With this move, Solana will be attracting institutional attention as Coinbase custody offers a comprehensive set of insurance policies for larger institutions to safely and more securely custody SOLs.
Additionally, Coinbase Custody, which also provides its services to Grayscale, offers staking and governance, “which are equally crucial for the long-term health of the network.”
Solana recently gained spotlight after derivatives exchange FTX launched its decentralized derivatives platform on it. FTX CEO Sam Bankman-Fried described Solana as a “fully decentralized blockchain,” which is “fast as fuck” and doesn't need a trusted centralized sidechain.
Solana can “process 10,000 times as much as Ethereum; and it's 1,000,000 times cheaper,” said Bankman-Fried at that time.
On the back of Coinbase Custody news, SOL jumped 26% but has since dropped 6% to now trade at $3.42.
For now, SOL is only available on Binance and FTX, but after this partnership, it might get listed on Coinbase as well. Solana has announced several partnerships so far in 2020, including Chainlink, KIN, and Terra Stablecoin.