The investment company Grayscale Investments turned to the custodial division of Coinbase to transfer its cryptocurrency assets to storage.
Earlier, Coinbase CEO Brian Armstrong said that the Coinbase Custody service manages customer assets worth $1.3 billion, and expects an increase in the volume of stored funds to $2 billion in the near future.
It is reported that Grayscale will transfer the cryptocurrency assets of BTC, BCH, ETH, ETC, LTC, XLM, XRP and ZEC for a total of $2.7 billion to Coinbase Custody. Coinbase Custory also intends to store the Horizon token after it receives appropriate approval from regulators.
Previously, most of Grayscale’s assets were stored in another custodial company – Haro. However, since July 29, Grayscale Investments has begun to cooperate with the Coinbase Custody division, which operates in accordance with New York banking law.
Coinbase Custody CEO Sam McIngvale noted that the company meets the same fiduciary standards as national banks, and also provides the widest insurance in the entire cryptocurrency industry.
The agreement states that Coinbase Custody will store Grayscale’s assets for three years and charge a commission based on the amount received. Representatives of Grayscale noted that before signing the agreement, they contacted 30 providers of similar services, but in the end they decided on Coinbase