According to the reports, Grayscale’s decision comes as a part of the custodian solution. Nevertheless, Coinbase custody will ensure the security of Grayscale’s largest crypto assets that including; Bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash, Stellar Lumens, Zcash, Etherum Classic, Horizon. Per the report, the firm plans to transfer nearly $3 billion of assets in fewer than 12 hours to Coinbase.
Grayscale Moves Billions in Crypto Assets To Coinbase Custody
Besides major cryptocurrencies, Coinbase Custody will also serve Grayscale’s publicly quoted crypto trusts and its Grayscale Digital Large Cap Fund that serve exposure to bitcoin and crypto via a market-cap-weighted portfolio; currently, it serves, Bitcoin, Ethereum, XRP, Bitcoin Cash an Litecoin. Sam McIngvale, Coinbase Custody chief executive states that;
“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,”
So far, Coinbase Custody has been serving crypto assets by several other market players. It is the NYDFS-regulated company that assures various security services to digital assets. Mainly, it offers access to a secure, audited and insured custody solution. Moreover, it is recognized as a fiduciary under NY Banking Law and is licensed to provide custody solution to its client’s digital assets in trust on their behalf. Following Grayscale’s announcement of selecting Coinbase over custody solution, Mr. McIngvale explains that;
“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.”
Nonetheless, its worth to note that the press release points the service incorporation begins on July 29. Accordingly, Coinbase will hold Grayscale’s assets for three years at the outset with a charge on the assets under custody. Moreover, both the parties can terminate the partnership with 90 days notice upon the conclusion of the initial term.