Digital asset management fund Grayscale Investments has chosen Coinbase Custody to safeguard $2.7 bln worth of different cryptocurrencies, which include Bitcoin and a slew of major altcoins, such Ethereum, Ripple’s XRP and Litecoin.
This is the biggest development for the rapidly growing Coinbase subsidiary that was launched in July 2018.
A $2.7 bln transfer
Coinbase has already inked deals with many high-profile institutional players. Brian Amstrong, the CEO of Coinbase, earlier revealed that the custodian held more than $1 bln worth of digital assets. Grayscale is about to nearly quadruple this amount.
Grayscale plans to move its funds on Aug. 2, which could be the biggest amount of transferred crypto in one day. Coinbase will hold the company’s crypto riches for at least three years, according to the press release.
According to Coinbase Custody CEO Sam McIngvale, the subsidiary boasts the same rigorous standards as some of the largest financial institutions.
We also offer some of the broadest and deepest insurance coverage in the crypto industry,” McIngvale told Forbes.
Prior to Coinbase, Grayscale appointed Hong Kong-based Xapo to serve as its custodian back in 2015. Xapo holds more than $10 bln worth of Bitcoin with the help of an international network of its underground vaults.