As the most popular cryptocurrency exchange in the United States, Coinbase has been a major player in helping to bring digital currency into the mainstream. And now, with the launch of Coinbase Custody, the company is looking to provide a safe and secure storage solution for institutional investors.

So, is Coinbase Custody safe?

Here’s a look at how Coinbase Custody works and what security measures are in place to protect investor assets.

How Coinbase Custody Works

Coinbase Custody is a storage service designed for institutional investors who want to invest in digital currencies. The service is offered by Coinbase, one of the largest and most well-known cryptocurrency exchanges.

Coinbase Custody is designed to be a highly secure storage solution for digital currency assets. Investor funds are stored offline in what are known as “cold wallets.

” Cold wallets are not connected to the internet and are therefore much less vulnerable to hacking than online “hot wallets.”.

In addition to cold storage, Coinbase Custody also makes use of multiple layers of security, including 2-factor authentication and biometric identification. All investor withdrawals from Coinbase Custody are subject to multiple levels of approval.

These security measures make Coinbase Custody a very safe place to store digital currency assets. However, it’s important to remember that no storage solution is 100% foolproof.

There have been cases of exchanges and wallets being hacked despite having strong security measures in place.

That said, Coinbase Custody provides a very high level of security for investors who want to store their digital currency assets safely offline.