Starting with $10 million, Coinbase will launch institutional coin deposit service

Cryptocurrency wallet and exchange startup Coinbase is launching a new storage service for institutional investors called Coinbase Custody.

Coinbase CEO Brian Armstrong wrote in a blog post today that the service will require a minimum deposit of $10 million. To use the service, users will also need to pay an initial setup fee of $100,000, as well as a 10 basis point (one thousandth) per month deposit fee (prices will change over time, Coinbase added).

The idea, according to the company, is to attract institutional investors who are concerned about the security of digital assets.

Armstrong wrote:

“When we talk to these institutions, they tell us that the number one thing holding them back from investing in digital assets is the lack of a digital asset custodian they can trust to safely store customer funds. That’s why we’re launching Coinbase Custody. It’s the next step in accelerating global adoption of digital currencies and unlocking the door for structured funds to enter the industry.”

The service will not be available immediately, but Coinbase said it will gradually roll out the product in 2018 and invite potential customers to contact it.

Given the growing number of institutional investors showing interest in cryptocurrencies, it’s perhaps unsurprising that Coinbase would offer such a service. Indeed, according to recent reports and announcements, a number of major hedge funds are eyeing the market, though how this interest will translate into actual investment remains to be seen.

Founded in 2012, Coinbase has raised more than $200 million in funding, including a $100 million Series D round in August.