Coinbase may be avoiding XRP on its trading platform for the reasons best known to them, but it defiantly has plans to exclude it from its custody operations. According to the blog post realized by Sam McIngvale, the Coinbase custody lead, the exchange is exploring a range of new assets for its custody operations.
XRP finally finds Coinbase’s consideration
Coinbase which has continuously avoided XRP from its trading operations is finally testing XRP for its custody operations. Although its blog post clearly mentions that asset additions to Coinbase Custody have no bearing on whether they will be added to other Coinbase products and for the asset to be added for Coinbase’s trading platform must pass its Digital Asset Framework, it definitely gives an opportunity for XRP and Coinbase to understand each other better. Maybe not immediately, but a fine understanding of each other’s framework, requirements and operation methodology may help XRP prepare and maybe in future pass its Coinbase’s Digital Asset Framework.
Apart for XRP the post also mentions 36 other ERC20 tokens which include to the likes of Cardano, ZCash, Stellar Lumens, EOS, Monero, Vechain, Tezos, QTUM, Bytecoin, Bitcoin Gold, Decred, Bitshares, ICON, Ontology, Steem, Dogecoin, Siacoin, Wanchain, Nano, Telegram, Filecoin, TaTaTu, Dfinity, Blockstack, Basis, Neo, Dash, NEM, TrustToken, Hedera Hasgraph, Tokencard, Polkadot, Kik, Props, Orignin and FOAM.
For more on today’s news or on Coinbase Custody in general, visit https://t.co/h038jNjivO
— Coinbase Custody (@CoinbaseCustody) August 3, 2018
According to the post,
“As part of the exploratory process, customers may see public-facing APIs and other signs that we are conducting engineering work to support these assets. While we cannot commit to when or whether these assets will become available on Coinbase Custody, we will provide updates to our customers about the process and what they can expect via our Twitter account”
Coinbase gets serious with custody operations as competition creeps up
Coinbase, a couple of months back announced its custody operations, as part of its Suite of Institutional Products. The exchange had taken this step as over past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency and even some of the world’s largest financial institutions had announced their plans to begin trading cryptocurrency. Currently, Coinbase counts the funds Autonomous Partners, Polychain Cap, and Multicoin Cap among its custody customers. The company says it aims to have more than 100 institutional customers and store at least $20 billion under custody by the end of 2019.
But it’s not just Coinbase, there are other companies that are too beefing up to launch custody operations as cryptocurrencies are slowly gaining attention for institutions. Another, Boston based company, Circle, Swiss stock exchange operator SIX and Australian advisory firm, Decentralised Capital amongst others have also got into the fray to capitalize the first mover advantage of this untapped market which promises to multiple. Hence the timing of this strategic move by Coinbase of adding ERC20 token could well place it ahead in the race.
Will Coinbase testing of XRP for custody operation could open doors for XRP to trade on Coinbase’s exchange in the future?
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.