Coinbase Custody Has $1.3bn In Assets Under Custody

Many best cryptocurrency news sites came with shocking reports about Coinbase Custody – showing that the company holds around $1.3 billion in assets under custody (AUC). Moreover, the firm expects to hit $2 billion AUC very soon, as a Twitter thread published a few days ago noted.

The series of tweets from the official Coinbase Custody Twitter account reported that the company’s CEO, Sam McIngvale, along with the chief information security officer, Philip Martin, both visited the United Kingdom. The purpose of the visit, as the altcoin news show, was reportedly “a discussion on the institutional cryptoeconomy with a range of prospects and clients.”

During the meeting, the representatives from Coinbase Custody argued that while many believe that there are no institutional grade offerings in the cryptocurrency space, Coinbase Custody is in face one of those offerings. The firm’s representatives said that the company is insured, regulated and a secure custodian.

“We have $1.3bn AUC and expect to hit $2bn soon. We have no intention of stopping there. […] Coinbase Custody services over 90 clients. Of those, approximately 40% are outside of the US.”

The tweet also claims that – as cryptocurrencies mature and become an even more popular and dominant asset class- financial hubs such as the city of London are becoming centers for crypto innovation.

Another tweet notes:

“1/ Last week Coinbase Custody CEO @sammcingvale and Coinbase CISO @SecurityGuyPhil visited the UK to discuss the institutional cryptoeconomy with a range of prospects and clients.”

A month ago, during one on-stage discussion at Consensus, the CEO of Coinbase Brian Armstrong said that its custody service had already raked $1 billion in assets under management (AUM). Having that in mind and the latest cryptocurrency news showing that this number went to $1.3 billion – it is certain that the custodial branch of the exchange is soon going to hit the $2 billion mark.

Meanwhile, as we reported in March this year, the US Securities and Exchange Commission (SEC) is soliciting industry input as it potentially reconsiders the existing custody rules in specific cases of digital asset trading as well as settlement.

Aside from Coinbase Custody and its London presence, the Hong Kong-based trading and asset management firm BC Group also announced that it is launching an insured custody service for cryptocurrencies.