Coinbase, the digital online platform for trading cryptocurrencies, is now charming hedge funds with a new institutional storage service targeted specifically for institutional investors, reported Coindesk.
The new storage service will be aimed at investors with a minimum of $10 million in deposits, according to Brian Armstrong, the Co-founder and CEO of Coinbase.
The procedure will apply once a user pays the initial $100,000 set-up fee, together with a 10 basis point fee per-month on the coins stored within the system (prices are variable, as of current, according to Coindesk and Coinbase).
Mr. Armstrong commented on the service:
“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely. his is why I’m excited to announce Coinbase Custody. The next step to accelerating the world’s adoption of digital currencies is to unlock the institutional money preparing to enter the space.”
The storage service will be launched in 2018, however. With the rising interest in cryptocurrencies, and the current market capitalization of the market at around $200 billion, with bitcoin contributing almost half of that amount, it is natural for hedge funds to start get a “feeling” for the digital currency market. With the underlying technology gaining momentum (blockchain) and quite a few innovations (the latest being the partnership between American Express and Santander), hedge funds have every right to get interested. Coinbase, which is one of the most famous cryptocurrency wallet and exchange company right now, seems to be at the forefront of realizing the opportunity behind a new product involving cryptocurrencies.