Coinbase Custody to hold Grayscale Investments’ $2.7B digital assets

Coinbase Custody to hold Grayscale Investments’ $2.7B digital assets

Grayscale Investments, which claims to be the largest digital asset manager in the world, has selected Coinbase Custody to be the new custodian for its digital asset holdings.

Coinbase Custody, which is operated by Coinbase, will serve as the custodian for Grayscale’s single-asset investment products including digital currencies and publicly listed funds such as Grayscale Bitcoin Trust, Grayscale Ethereum Trust, and Grayscale Ethereum Classic Trust.

It will also provide custodial services for Digital Large Cap Fund, which provides exposure to Bitcoin, Ethereum, XRP, Bitcoin Cash, and Litecoin through a market-cap-weighted portfolio.

Grayscale and Coinbase have led the way in providing safe, secure, and trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same,” Sam McIngvale, Coinbase Custody CEO, said.

As per its press release, Coinbase Custody started holding the company’s assets on July 29. Coinbase Custody is regulated by the New York Department of Financial Services and complies with New York’s banking law.

As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry,” McIngvale said.

Under the agreement, Coinbase Custody is expected to hold Grayscale’s asset for 3 years at the outset, with a charging fee based on the assets under custody. Both companies have agreed to escape clauses for the contract period. Once the initial term ends, each firm can opt to terminate the partnership with 90 days’ written notice.

According to CoinDesk, most assets are being transferred from Grayscale’s existing security provider Xapo. Digital Asset Custody Company also currently holds the private keys of Grayscale’s horizon.

Earlier this month, Grayscale revealed in its most recent quarterly report that it holds $2.7 billion in total assets under management, its highest of all time. Grayscale holds bitcoin, bitcoin cash, ethereum, ethereum classic, litecoin, Stellar lumens, XRP, and Zcash. It also has plans to hold Grayscale’s horizen (Zen) token, awaiting regulatory approval to support the asset.

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