Coinbase is going after big hedge fund money with its new cryptocurrency security platform

pulse

November 16, 2017 10:32 PM

Coinbase Custody was built to meet the security needs of institutional investors like hedge funds, according to a Medium post by Coinbase's CEO.

Coinbase, the US cryptocurrency exchange, is wooing big hedge fund money with a new security platform.
Coinbase Custody was built to meet the security needs of institutional investors like hedge funds and family offices, according to a Medium post by Coinbase CEO Brian Armstrong.

The impressive appreciation of cryptocurrencies like bitcoin and Ethereum has finally piqued the interest of big money, but some still have their reservations about whether their crypto-investments will be secure.

Who can blame them? Just last week, an unidentified user accidentally deleted the code library required to use recently created digital wallets within Parity, a popular digital-wallet provider, and cryptocurrencies have long been associated with the chasms of the deep, dark web.

"We are designing Coinbase Custody to meet the needs of institutional clients," Armstrong said in a Medium post highlighting the news.

Some of the heightened security features, according to Armstrong include:

The service will charge users a $100,000 startup fee. Armstrong said there will also be a monthly fee

Coinbase, a unicorn company valued at more than $1 billion, is among the most visible cryptocurrency companies operating in the US. They store $9 billion worth of digital currencies and are backed by financial

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