Home / Altcoins / Coinbase Custody Uncovered It’s New Cold Storage Cryptocurrency Trade

Coinbase Custody Uncovered It’s New Cold Storage Cryptocurrency Trade

According to the blog post published on March 13, 2019, the custodial tool of US-based cryptocurrency exchange, the Coinbase has completed its first OTC {over-the-counter} trade from cold storage. The further post revealed that Coinbase Custody is now directly integrated with Coinbase’s OTC desk, which makes the customer use the OTC desk to price and confirm trades prior to moving their funds. The product allegedly provides easy and immediate liquidity on users offline funds, which means that now it takes less time to its users to access their funds and avoid the waiting period to access them.

Brian Armstrong, the co-founder of Coinbase, outlined in February the common misconception about crypto custody solutions. He argument tackled the perception that the hot storage is always necessary to provide the flexibility and speed required to execute trades. He also notes that participating in a Proof of Stake {pos} network and earning returns on stakes coin does not necessarily imply the latter need to be stored in a hot wallet. He also detangles the relationship between single key holders and whether the storage is hot or cold and mentioned the hardware security modules arguing that they can come closer to the security of cold storage.

The OTC trading was launched by Coinbase in last November. Christine Sandler, the head of sales of Coinbase pointed out that there is an increase in demand for OTC crypto trading from institutional players. He said that the availability of both exchange and OTC business was a huge benefit to their customers. At that time Sandler revealed that the OTC service was likely to be combined with Coinbase Coutody at later date.

According to the sources, the Coinbase introduces a service to link users accounts on it’s the main platform to its Coinbase Wallet app, which allows quicker transfer from the main account to the wallet. In future company is planning to allow customers to send crypto back to their main account from the wallet.

Security Service to Customers

The Coinbase OTC desk is the agency only and all counterparts have to clear their robust KYC and AML policies despite the thorough checks, the exchange also asserted that it will preserve anonymity for both counterparties while guaranteeing settlements, which in turn improves the security service to its customers.

The Coinbase launched its service after the similar launch by BitGo done in January this year. Many believe that Coinbase is already on its way to surpass the launch of BitGo as the exchange counts some of the largest institutional investors and company as its clients. The Pro users could avoid the need for moving their fund to other OTC desk, removing the risk that comes with such transfers.

About Steve Anderrson

Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates:

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