Coinbase Custody, what is it?



hello and welcome to the cryptocurrency news channel if you want to get cryptocurrency news it updates please hit that like and subscribe button and hit that notifications button so you can get notified every time I do a new cryptocurrency video video is sponsored by secure cloud coins symbol SC 2 which aims to be the new cloud and VPS services payment provider symbol SC 2 not a recommendation to buy but please take a look at it today's topic is going to be on coin based on coins its custody and I'm gonna explain what it is it's actually a very simple explanation this is coin based pro this is not coin based custody coin based custody is entirely targeted at a different kind of customer and I'll explain that so what is coin based custody so some people have asked me um because I've said like the coin based custody thing might change the game and bring in a lot of institutional money and I'll explain why that is so some people think it's similar to an ETF a hedge fund or something else it's not an ETF or a hedge fund it's actually simply a safe and secure store split space for institutions to store their cryptocurrency some of you might not know because you keep all your cryptocurrency in your own personal wallet but if you have a lot of crypto and it might be difficult to actually find a good place to actually store it if you're like an institution or a bank with a ton of crypto there might be problems and like you have like you know thousands upon tens of thousands of Bitcoin if you're like you know JP Morgan Goldman Sachs or some kind of fund and you don't have anywhere secure to store because exchanges can get hacked obviously and there's sometimes liquidity problems with exchanges so you need a place to securely store your Bitcoin like coin whatever cryptocurrency you have now coin base is basically a as partnered with et Cie which is not aetherium classic in this case it's electric electronic transaction clearing which is an SCC registered broker-dealer and fin remember that a subject to independent audits that basically gives coinbase and their custody a lot of credibility when a stealing with institutions and institutions actually have trust in coinbase to be able to store and secure their cryptocurrency now I'm assuming coinbase offers a lot of insurance when institutional investors do this because the a lot of times are in storing a lot of Bitcoin and this is actually one of the reasons that institutional investors are slow to adopt cryptocurrency because you know unlike banks which give us FDIC insured accounts or funds or whatever cryptocurrency doesn't really have that much insurance especially where you want to keep it with the exchanges I mean obviously you can just keep it on your computer but if your computer crashes you probably have like backups but you know someone can basically just like kidnap you and steal it from you and that's a lot harder to do if it's in cold storage with coinbase or something else so basically coinbase has accepted its first client and customer it's probably going to accept more it only has like four or five coins I think for coins actually in its custody program but it's going it's thing about adding 40 more and that includes like doge coin by coin and a couple of other coins that i've been talking about lately so it's going to be very very attractive for hedge funds and you know large funds to buy those specific type of coins that coin base has in its custody program because now they have somewhere to store all that money safely now story at all like for a large company or a bank storing it all like in their own you know all like computer is not a good idea there's just too much money they need someone to ensure all that money just in case you know there's a hack or something and they want someone else to access a custodian so the response they can like you know have the responsibility on that other party they don't want the responsibility to themselves they lose it they need insurance the customers need insurance and that's why they look for a custody program and none of the exchanges really offer it coinbase I think is the first one that truly offers it others are working on it and I think this actually removes one of the big hurdles for institutional investors to get involved the fact that you have somewhere that can actually extort a store your Bitcoin with insurance safely so hopefully you know like as more coins get on this that removes the huge barriers for people to get into the market and that's why I think you know it's it's really important for smaller coins like sia cohen doge coin by coin to actually get in on this and that's why I think the forty on that list especially some of the smaller ones on that list will get a pretty big bounce getting added to the coin base custody because getting added to coinbase custody means now you have a safe and secure way for larger investors to actually purchase a lot of like say like not like just a million dogecoin we're talking about in terms of dogecoin like we're talking about tens of millions of dogecoin or like maybe maybe a hundred million dogecoin or something like that even in the billions of dogecoin if you have that much dogecoin you don't want to store it on just one or two computers you want like someone to insure you to store that much coins you know so generally hopefully you know when dogecoin ur side coin or buy coin gets added like I said Bester's will find those coins more attractive because now they can store it safely somewhere and take it out whenever they want without having a fear of someone stealing it so that's why this is a big deal and that is what coin based custody is and why it might offer a lot more money flowing into the coins that are actually part of its custody so that is the explanation of corn-based custody thank you and have a nice day

3 thoughts on “Coinbase Custody, what is it?”

  1. I found a youtubers name Jacob Matherly He is tracking the richest dogecoin list? You should make dogecoin whale manipulated it.

  2. Great video also loyds of London, Morgan creek, the Bakkt exchange all will offer custody even Bank of America filed for custody patent. We are gonna moon soon the institutional investors are coming so fill your bags

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