Grayscale Investments chooses Coinbase Custody for storage of its crypto-assets

  • 02 August 2019, Friday, 13:50

Grayscale Investments, one of the world’s largest digital asset management firms, has announced teaming up with Coinbase Custody to manage the underlying assets for a number of products that it offers. Coinbase would provide these services for Grayscale’s single-asset investment products which have underlying assets in Bitcoin, Litecoin, Bitcoin Cash, Ethereum Classic, Stellar Lumens, XRP and Zcash.

Apart from single-asset investment products, Coinbase would also provide custodian services for Grayscale’s diversified investment product, Grayscale Digital Large Cap Fund. The diversified investment product provides exposure to top crypto tokens based on their market capitalization and currently comprises of Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin.

Sam McIngvale, Coinbase Custody’s Chief Executive Officer, commented on the newly announced partnership and said,

“Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same. As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”

The agreement between the two firms has been finalized for an initial period of three years, and the fee will be based on the percentage of assets that are under the custody of Coinbase. The partnership will open the gates for other digital asset management firms to select a third-party custodian for managing their underlying assets for their products, while also ensuring the safety and security of those assets through trusted custodians.

Source: ambcrypto.com