Coinbase, the San-Francisco-based crypto exchange announced on Friday that it will be exploring 40 digital assets. With time, cryptocurrencies are becoming more mainstream – big institutions are adding it to their platforms or portfolios. As this presents a potential opportunity for investors, it also provides a new business strategy for platforms like Coinbase. They can charge funds to be the custodian of the users’ digital assets.
A custodian will hold the assets, keep them safe and protect from theft. In return, the custodians charge a fee to keep the assets secure. According to their blog post, the digital assets may be added “for storage only,” Coinbase will soon add them “as quickly and safely as possible.” According to the post, “We are making this announcement internally at Coinbase and to the public at the same time to remain transparent with our customers about support for future assets.”
The crypto exchange currently acts as custodian for four cryptos —Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC). They charge 0.1% a month in addition to a $100,000 set-up fee, according to company’s information last year as cited by Fortune. The new coins which are being considered include Ripple’s XRP, EOS, Monero (XMR), VeChain (VEN), Cardano (ADA) and Bitcoin Gold (BTG). For custodian service, custodians must store at least $10 million. Here’s a screenshot of the other cryptos to be added:
With the custody services, Coinbase expects to increase its revenue. However, the specific time for when the custody support for the new assets will start is not known. It is to be noted that Coinbase is not the only crypto company to offer the services, there’s another is Boston-based crypto company, Circle, offering the same. In other news, the crypto exchange also revealed on Friday that the traders will be able to buy and sell Ethereum Classic (ETC) from Tuesday. The company first announced that it will be adding ETC, in June.
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