In order to offer services to institutional investors, Coinbase Custody must meet the definition of a qualified custodian. The definition of a qualified custodian is set forth in Rule 206(4)-2 under the Investment Advisers Act of 1940. The rule defines a qualified custodian as follows:
A bank, savings association, broker-dealer, Futures Commission Merchant (FCM), registered investment adviser, or other person who, pursuant to a written agreement or contract with an investment adviser registered under the Advisers Act, has agreed to hold in its custody clients’ securities and cash subject to the investment adviser’s control and authority.
NOTE: Coinbase Custody is not a qualified custodian according to the standards set by the U.S. Securities and Exchange Commission (SEC). It is not registered with the SEC or any other financial regulatory authority, and therefore may not provide the same safeguards that a qualified custodian would offer. Therefore, users should be aware of the risks associated with using Coinbase Custody as a custodian of their digital assets.
In order for an entity to fall within the definition of a qualified custodian, it must have physical possession of the securities it holds in custody for its clients. This is typically accomplished through the use of a third-party custodian such as a bank or broker-dealer.
Coinbase Custody uses multiple third-party custodians to hold the digital assets it holds in custody for its clients.
While Coinbase Custody is not itself a qualified custodian, it does meet the definition of a qualified custodian by virtue of its relationships with its third-party custodians. As such, Coinbase Custody is able to offer institutional investors the ability to custody their digital assets with a qualified custodian.
5 Related Question Answers Found
As the world’s leading digital asset exchange, Coinbase has been at the forefront of the cryptocurrency revolution. In addition to allowing users to buy and sell digital assets, Coinbase also provides a custody service for institutional investors. Recently, there has been speculation that Coinbase may offer a custody service for individual investors as well.
Coinbase Custody is a digital asset platform that offers institutional investors secure storage of digital assets, like Bitcoin and Ethereum. The platform is designed to meet the needs of institutional investors, like hedge funds and family offices, who require the highest levels of security and compliance. Coinbase Custody is a subsidiary of Coinbase, Inc.
, which is one of the most well-known and respected cryptocurrency exchanges in the world.
As the digital asset sector continues to grow and mature, institutional investors are taking notice and seeking out new ways to participate in the market. One such way is through Coinbase Custody, a digital asset custodian service designed specifically for institutional investors. Coinbase Custody is a secure, compliant, and insured platform that offers features and services that are tailored to the needs of institutional investors.
As the world’s largest cryptocurrency exchange, Coinbase is often thought of as the most reliable place to buy and sell digital assets. But does Coinbase provide custody? The answer is both yes and no.
As the world’s leading digital currency exchange, Coinbase has been at the forefront of the cryptocurrency industry since its launch in 2012. In recent years, Coinbase has expanded its services beyond simply buying and selling digital currencies to include other services such as custodial storage. Can individuals use Coinbase Custody?
