BITCOIN, BLOCKCHAIN

Coinbase Custody Exceeds $1 Billion in Assets Under Management

Coinbase CEO Brian Armstrong has stated Coinbase Custody, the exchange’s custody service, has $1 billion in assets under management (AUM).

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Brian Armstrong

“We launched our custody 12 months ago, we’ve just crossed $1 billion AUM or institutions, 70 institutions have signed up, adding about $150 million AUM a month, so, to a large degree that has been a success,” said Armstrong.

Armstrong added participating institutions want their funds to be moving while in custody.

“They want to be staking and voting, doing governance on-chain,” Armstrong said.

“I think that will grow rapidly.”

Bitcoin is still the main asset of choice for institutions, according to Armstrong, but other cryptocurrencies are growing in popularity.

Currently, Coinbase offers 30 coins for institutions, including staking-as-a-service for some.

Union Square Ventures partner Fred Wilson, who was also on the panel with Armstrong, stated the institutions involved are not necessarily the traditional companies one might be accustomed to see, such as BlackRock.

“The token funds and venture funds will make up the first two big institutional funds,” Wilson said.

“For them to take their chips and go all in, I don’t see that in the next year or two.”

Wilson added:

“When people read in the Wall Street Journal that institutions are coming to crypto they think Goldman is coming, but in reality, maybe 100 token funds in the U.S. and 100 in Asia are all in so far.”

Coinbase Pro, a product aimed towards more advanced traders, has seen a significant increase in institutional involvement as well, according to Armstrong.

“Sixty percent of our trading volume is from institutions,” Armstrong said.

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