Coinbase Custody announced

A Digital Currency Custodian For Institutions announced by the US cryptocurrency exchange Coinbase 
17 November 2017   1576

Californian company Coinbase announced the launch of a new company, the main purpose of which will be to assist institutional investors in the safe storage of digital assets. The new company was named Coinbase Custody.

According to the CEO of Coinbase, over the past year, more than 100 hedge funds targeting digital currencies have been created, and even more traditional institutional investors are beginning to view digital assets as one of the options. In addition to traditional hedge funds, it also deals with family funds, capital saving funds and other types of conservation and asset growth.

By some estimates there is $10B of institutional money waiting on the sidelines to invest in digital currency today.

Brian Armstrong

Co-founder and CEO, Coinbase 

According to Brian Armstrong, institutional clients require:

  • Strict financial controls (multiple signers, audit trails, limits, etc)
  • Dedicated account representatives and phone support
  • SLAs on funds transfers
  • A regulated digital currency custodian
  • Multi-user accounts with separate permissions
  • Support for a wide range of digital assets and currencies
  • Insurance (in some cases)
  • And high levels of cyber and physical security

Coinbase is well positioned to launch this product. We already store billions of dollars worth of digital assets on behalf of our customers. We serve thousands of institutions via our GDAX product, the leading digital currency exchange in the U.S. We’ve raised $216M from venture capital firms and financial institutions like the NYSE/ICE, USAA, BBVA, Westpac, and MUFG. And we have approximately 200 employees working across our three offices in New York, London, and San Francisco with deep industry knowledge. 

Brian Armstrong

Co-founder and CEO, Coinbase 

The statement notes that in the coming years Coinbase Custody will help significantly increase the flow of institutional money into digital currencies.

The product will be gradually introduced throughout 2018 and will be available only to investors willing to make a minimum purchase of $ 10 million.

SoftBank Founder to Lose $130M Due to BTC Investment

Masayoshi Son bought Bitcoin at the peak price and sold in the beginning of 2018
23 April 2019   137

Billionaire and head of the Japanese media corporation SoftBank Masayoshi Son made a major bet on the growth of Bitcoin during its price peak, which led to losses of more than $ 130 million, The Wall Street Journal reports, citing informed sources.

The exact amount of investment is unknown. However, the publication reports that Son acquired “digital gold” at the end of 2017, when BTC price confidently moved to around $ 20,000. Against the background of a sharp fall in early 2018, the investor got rid of the asset, fixing the loss.

Masayoshi Son is famous for his extreme risk appetite. So, at one time he invested in the Alibaba Group after a five-minute conversation with its founder, Jack Ma. Also, Son decided to invest $ 200 million in a startup dealing with solutions for growing vegetables indoors, thinking only about 30 minutes.

Some time ago, SoftBank's investment division sold Nvidia shares for $ 3.6 billion. The decision was made after a significant reduction in the capitalization of the manufacturer of video cards.