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 custodial service Coinbase Custody manages customer assets in the amount of $ 1.3 billion, and is already expecting an increase in stored funds to $ 2 billion soon.
It is reported that Grayscale will transfer BTC, BCH, ETH, ETC, LTC, XLM, XRP and ZEC cryptocurrency assets to Coinbase Custody for a total of $ 2.7 billion. Coinbase Custory also intends to tackle the storage of the Horizen token after it receives appropriate approval from regulators .
Previously, most Grayscale assets were held in another custodial company – Haro. However, on July 29, Grayscale Investments began working with Coinbase Custody, 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 broadest insurance in the entire cryptocurrency industry.
The agreement states that Coinbase Custody will hold Grayscale assets for three years and charge a fee 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.