Effective the end of last month, digital asset manager Grayscale will use Coinbase Custody as their custodian for their “single-asset investment products” including digital currencies as well as publicly listed funds: Grayscale Bitcoin Trust (OTCQX: GBTC) Grayscale Ethereum Trust (OTCQX: ETHE), and Grayscale Ethereum Classic Trust (OTCQX: ETCG). Additionally, Coinbase will provide custody services for Grayscale Digital Large Cap Fund™, which provides exposure to the top digital currencies by market capitalization and is currently comprised of Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and Litecoin (LTC).
Grayscale Investments claims title as the world’s largest digital currency asset manager with more than $2.5 billion in assets under management. Grayscale is part of Digital Currency Group, founded by Barry Silbert in 2015.
Sam McIngvale, Coinbase Custody Chief Executive Officer, said 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,” added McIngvale.
As a qualified custodian, Coinbase Custody is a fiduciary under New York Banking Law and is licensed to custody its clients’ digital assets in trust on their behalf.
Coinbase Custody noted that it does not yet support Grayscale Horizen Trust or “ZEN” – a privacy-focused digital currency. Since inception, ZEN has lost over 70% of its value. If or when Grayscale Horizen Trust receives regulatory approval, Coinbase expects to provide custody for this as well.
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