ASSEMBLE: What is Coinbase Custody?
Let’s learn more about blockchain custody solutions
The ASSEMBLE Protocol is a blockchain-based global point integration platform that exploits ASM utility tokens, whilst establishing a business ecosystem that can integrate, utilize existing points and miles with point providers, consumers and retailers.
Welcome back, readers! Today, we’re going to introduce you to custody services for blockchain. Custody is used extensively in relation to property ownership. Sometimes it means transferring ownership and sometimes it means delegating authority. You might still be confused, so let’s find out how custody is used on the blockchain.
Coinbase Custody Services
Coinbase Custody is a cryptocurrency custody service that purchases virtual assets on behalf of institutional investors or stores private keys for already purchased virtual assets. Institutions that deal with large-scale funds prefer custody services because they can reduce the risk of external theft since they do not manage their assets directly but leave them with a professional institution.
Coinbase Custody’s Business Model
Coinbase Custody creates profits by storing assets, collecting fees, and managing deposit funds. However, there is a difference between overseas and domestic custody solutions. In the United States, there is a licensing system that recognizes cryptocurrency companies as custodial institutions. This gives them the right to store and manage digital assets. However, in Korea, cryptocurrency-related businesses have not yet been recognized as custody businesses, so it is difficult to manage the cryptocurrency deposited by customers.
Custody Status
- Current status of custody services in overseas financial companies:
**Fidelity Digital Assets: Launched a cryptocurrency trading and storage platform in the first quarter of 2019
**Schwab: USD 1.13 trillion deposited
**Pershing: USD 160 billion deposited - Current status of custody services in Korean financial companies:
**Shinhan Bank: Conducted joint R&D with the Korean Digital Asset Custody (KDAC) to enter the digital asset custody business
**KB Kookmin Bank: Invested in Korean Digital Asset (KODA) and launched a digital asset custody service in 2021
**NH Nonghyup Bank: Developed a custody platform that can store digital assets and link them to financial products
Custody services can be complicated, but they’re a very necessary tool for a secure network. They provide lots of opportunities for investors and institutions. We hope this article was helpful. See you next time!
