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Grayscale to Move Almost $3 Billion Worth of BTC, ETH, XRP to Coinbase Custody


zycrypto.com 03 August 2019 06:34, UTC
Reading time: ~2 m

The largest transfer of Bitcoin, Ethereum, XRP, and other digital assets in a single day is about to take place as Grayscale Investments, LLC, a cryptocurrency investment manager makes plans to move billions worth of cryptocurrencies to Coinbase Custody.

Grayscale to Move $3 Billion Worth of Crypto to Coinbase Custody

Per the report, New York-based Grayscale Investments intends to transfer almost $3 billion worth of cryptocurrencies including Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin and other Grayscale’s family of products. These assets will be moved to Coinbase custody, a standalone platform owned by Coinbase cryptocurrency exchange.

In the same vein, the crypto assets will be transferred in a single day and as such, it represents the highest volume ever moved in the crypto space within 24 hours. Upon their transfer, Coinbase custody will become the custodian of Grayscale’s crypto-assets.

Coinbase Custody is Held in the Same Fiduciary Standards as National Banks

Sam McIngvale, Coinbase Custody chief executive while making comments about the potential move and trying to put people’s mind at ease said Coinbase Custody is “held to the same fiduciary standards as national banks”. Also, the NY State-chartered trust company offers some of the deepest and broadest insurance coverage in the crypto space.

McIngvale also said:

“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.”

Grayscale’s Report Showed $2.5 Billion Under Management

On the other hand, Grayscale had released its “Q2 2019 Grayscale Digital Asset Investment Report” pertaining to the activity and performance of its products between April 1, 2019, and June 30, 2019. According to the report, the company as of July 15, 2019, had approximately $2.5 billion assets under its management.

Grayscale also conducted a survey of 1,100 Americans who fall between the ages of 25 and 64. The crypto asset manager revealed that 36 percent of respondents are willing to invest in Bitcoin. However, issues such as hacks and thefts on exchanges as well as the lack of clear regulations about the crypto space was a hindrance.

Bitcoin, on the other hand, has been the center of attention of late. Google Trends also revealed that the search interest in Bitcoin has been higher than stocks for some months now. Most of this high-level interest in Bitcoin can be attributed to Facebook’s intended launch of its Libra cryptocurrency which has made even the uninitiated aware of crypto assets.

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