Coinbase Custody is quickly becoming a household name. The largest cryptocurrency operator in the US is joining efforts with Wilshire Phoenix to bring on board a new cryptocurrency-focused fund. Reports have it that the fund is worth $500 million is organized as a statutory trust. The goal behind the launch of the fund is to boost Bitcoin’s exposure. Besides, it is on record that Coinbase Custody is the most secure crypto storage solution.
Wilshire Phoenix’s aim is to mitigate risks involved with the unpredictable price action of Bitcoin
The Generally Accepted Accounting Principles (U.S GAAP) have previously affected Bitcoin’s pricing models. The GAAP compliance is particularly in the purchase and holding of digital currencies. Thus, investors and financial institutions have found it difficult to do business with the likes of Bitcoin. This is because of the often unnecessary additional fees.
The joint venture is timely given Coinbase’s broad range of institutional product offerings. Nonetheless, it is not clear what products the duo will use to achieve its objective of price stabilization.
The duo’s commitment to executing solutions for institutional clients
According to the Founder & CEO of Wilshire Phoenix, Bill Herrmann, they felt that time had come for executing the talks.
The General Manager of Coinbase Custody Trust, Sam McIngvale notes, “As a regulated Qualified Custodian and fiduciary, Coinbase Custody will not only offer Wilshire Phoenix clients’ secure storage for digital assets, but also the ability to perform GAAP-compliant audits whenever the need arises.”
The partnership is the second milestone within a week for Coinbase Custody after attaining a license under New York State banking law. The crypto storage solution can now offer custody services for Ether Classic, Bitcoin Cash, and Ethereum among others. It serves over 25 million customers globally having built the world’s leading platform for cryptocurrencies.
