On the first anniversary of Coinbase Custody’s public release, the asset storage service now boasts over $1 billion USD in held funds. Coinbase CEO Brian Armstrong released this info during a question-and-answer session during Consensus 2019. One of the largest conferences devoted to cryptocurrency, Consensus 2019 often hosts major announcements from a slew of cryptocurrencies. Yet, this was more of an off-the-cuff remark from Armstrong. The amount came as part of his answer regarding institutional involvement in the market – along with an assurance that these funds were not simply sitting idle.
Coinbase remains the foremost fiat gateway for the United States – providing users with a means to exchange U.S. dollars into a variety of top cryptocurrencies. Coinbase Custody evolved from the security measures necessary to secure such an exchange. In an industry that is often beset by exchange hacks, Coinbase sought to provide institutional investors with heavier security and stronger assurances. Operating under more stringent regulations and with full insurance, it appears to have attracted a new level of investor to the cryptocurrency market.
The Market’s Obsession with Institutional Investment
During the lead-up to the crypto-bubble in late 2017, ‘institutional investment’ became a constant buzzword throughout the market. Users were eager to reap the rewards of their early investor status, waiting for the sudden influx of traditional financial vehicles into the cryptocurrency industry. News of traditional partnerships and major players entering the market often spiked the prices of associated coins. However, the crypto-winter proved that the industry still had a long way to go.
Now, with prices turning around and new money moving into the market, nascent projects are coming to fruition. This includes several means to purchase physical goods using digital currency. Even if they are not directly getting involved, many major banks are being forced to adapt to the changing landscape. Coinbase Custody enables the entrance of institutional funds by providing a safe storage space.
Coinbase Adds XRP and Starts Trending
Long rumored but frequently delayed or dismissed, the addition of Ripple’s XRP token is an unsurprising move for Coinbase. XRP spent the latter half of 2017 jockeying with Ethereum for the number two spot by market cap. Further, they remain the cryptocurrency with the closest ties to major financial institutions. The RippleNet suite of products services dozens of high-profile banks across the globe.
More good news for Coinbase, their native app is now trending on the ‘Popular’ section of Apple’s store. This is also an excellent indicator for the market itself, heralding a new rush of users – or at least the return of former investors.
Article By: Adam Stone