Coinbase, Exchanges

Does Coinbase Offer Custody?

As the world’s largest digital currency exchange, Coinbase is often thought of as a place to buy and sell Bitcoin, Ethereum, and other major cryptocurrencies. But what many people don’t know is that Coinbase also offers cryptocurrency custody services through its Coinbase Custody subsidiary.

In this article, we’ll take a look at what Coinbase Custody is, how it works, and whether or not it’s a good option for those looking to store their digital assets.

What is Coinbase Custody?

Coinbase Custody is a service offered by Coinbase that allows institutional investors to store their digital assets in a secure, offline environment. Coinbase Custody is built on top of the same security infrastructure that powers Coinbase’s exchanges, which are some of the most secure in the world.

Coinbase Custody stores digital assets offline in what are known as “cold storage” wallets. These are wallets that are not connected to the internet, which makes them much less susceptible to hacks.

In addition, all of the private keys for the wallets are stored in physical locations that are spread out across multiple geographical regions. This further adds to the security of the system, as it would be very difficult for someone to hack into all of the different locations and steal the keys.

Coinbase Custody also employs a number of other security measures, such as multiple layers of security protocol and regular auditing by third-party firms. All of these factors make Coinbase Custody one of the most secure ways to store digital assets.

How Does Coinbase Custody Work?

Coinbase Custody works by allowing institutional investors to open an account and then deposit their digital assets into that account. Once the assets are deposited, they are stored offline in cold storage wallets.

NOTE: WARNING: Coinbase does not offer custody services. This means that you will be responsible for your own security and the security of your digital assets. Coinbase does not provide any form of insurance for digital assets held on its platform. You should always take appropriate measures to protect your digital assets from theft or loss, including implementing two-factor authentication and setting up a secure password.

The investor can then choose to either hold onto the assets or trade them on one of Coinbase’s exchanges.

Investors who want to trade their assets will need to first go through a process known as “whitelisting”. This involves providing some personal information, such as your name and address, as well as proof of identity.

Once you’ve been whitelisted, you’ll be able to trade your digital assets on any of Coinbase’s exchanges.

Is Coinbase Custody Safe?

Yes, Coinbase Custody is a very safe way to store digital assets. As we mentioned earlier, it employs some of the most advanced security measures available today.

In addition, Coinbase Custody is regularly audited by third-party firms to ensure that its security protocols are up to par. Overall, we believe that Coinbase Custody is one of the safest ways to store digital assets.

Does Coinbase Offer Custody? – Conclusion

Yes – Coinbase does offer custody through its subsidiary – Coinbase Custody.

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