Grayscale Investments, an asset manager for bitcoin and assorted cryptocurrencies, is moving billions of dollars-worth of crypto investments over to Coinbase Custody, a platform developed by the U.S.’ leading cryptocurrency exchange for professional and institutional traders. Sources claim it is one of the largest cryptocurrency transfers to occur in the history of the space.
Grayscale and Coinbase: A Perfect Match?
In all, Grayscale is expected to transfer more than $3 billion in assets to Coinbase’s platform. The transfer will occur in less than 12 hours, making it the largest single-day move of its kind. The company claims to be “the world’s largest bitcoin and digital currency asset manager.”
Among the currencies being moved to Coinbase Custody are bitcoin, bitcoin cash, Ethereum, Litecoin, and Ripple’s XRP. Sam McIngvale, the chief executive of Coinbase Custody, explained in an interview:
Grayscale and Coinbase have led the way in providing safe, secure, 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. 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.
The maneuver is even more important in the sense that Coinbase Custody is, as stated in the quote, based in New York, which has long been labeled a “dismal” area for cryptocurrency thanks to its BitLicense requirements. All crypto-based companies seeking to do business in the blockchain space are required to adhere by the rules set forth by New York’s BitLicense. The document requires several additional fees for said businesses, which are considered blockades of innovation.
As a result, many crypto-based enterprises in the past have packed up and said good-bye to the Big Apple.
Greyscale’s new partnership with the platform may be contributing to the sudden rise of bitcoin, which spiked as much as $500 during the early morning hours of August 2. A news report by cryptocurrency firm Digital Delphi says that bitcoin and crypto enthusiasts can expect the asset to surge even further in the coming weeks.
Why Bitcoin May Surge Further
In addition, it also states that global GDPs are expected to fall, while inflation and “looser” monetary policies are set to take precedence during the remainder of 2019, thereby boosting bitcoin’s current prospects. The report explains:
A key reason behind bitcoin’s outperformance in recent months is the strengthening narrative around its value proposition as ‘digital gold.’ The macro backdrop that’s emerging is the perfect storm for bitcoin to thrive as it has the potential to benefit from both secular and cyclical trends in the coming years… Global PMIs, GDP growth forecasts and inflation expectations are all trending lower, which helps support the case for looser monetary policy.
The post Coinbase Custody Will Manage Grayscale Crypto Assets appeared first on Live Bitcoin News.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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