Coinbase Custody announced today that it will launch Tezos cold storage staking services for institutional customers.

Kathleen Breitman, co-founder of Tezos commented: “The launch of Tezos staking through Coinbase Custody serves an acute need that existed up until now: a way for institutional participants who rely on a secure, offline custodian to take an active role in the network. Achieving our mission of creating a ‘digital commonwealth’ means facilitating participation for all, and that includes the institutional customers that Coinbase Custody brings to the space.”

Coindesk further reported that after deducting Coinbase’s fee, clients can expect to earn about 6.6 percent annually.

It is to be noted that Coinbase has recently recruited Luke Youngblood, formerly a principal solutions architect at Amazon Web Services, to develop staking and governance solutions for Coinbase Custody.

Coinbase Custody is a specialized crypto asset custodian for institutions (organizations with greater than $10M USD in assets), promising to provide safety of assets, regulatory clarity and transparency and reducing operational complexities for the clients.

Coinbase Custody claims to be the first all-in-one, truly institutional-grade staking service. Coinbase Custody runs its own nodes and validators and subjects them to the same security and infrastructure standards that have safely stored tens of billions of dollars in crypto over the past seven years.

Some specifics:

  • 100% offline, segregated storage for all client funds: Coinbase Custody posts all bond requirements for its bakers.
  • Staking fiduciary and Qualified Custodian: Coinbase Custody is a fiduciary and offers staking services as a non-discretionary fiduciary activity to its clients.
  • Ease of use: clients enjoy the same simple deposit, withdrawal, reporting and consensus features as with any other asset on Coinbase Custody.

This news is huge for the Tezos community as it will provide access to a whole new group of institutional investors, including:

  • Asset Allocators
  • Endowments
  • Foundations
  • Pension Funds
  • Family Offices
  • Hedge Funds
  • VC Funds
  • Index Funds

Coinbase also announced that in addition to staking, it will also launch Maker and Tezos voting in Q2–19.


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