Through a blog post, the US-based cryptocurrency exchange Coinbase has revealed that its custodian tool, Coinbase Custody, has successfully performed its first cold storage based over-the-counter (OTC) trade.
The blog post shows that Coinbase Custody has now been incorporated directly with the Coinbase OTC platform, which allows clients to make use of the OTC platform to price and conclude trades even before transferring funds.
The product allegedly gives users simple and instant liquidity of funds held offline, so that Custody users can quickly gain access to their funds and avoid a waiting period.
In February, Brian Armstrong, co-founder and CEO of Coinbase, highlighted four popular misunderstandings about crypto custody facilities. Armstrong’s arguments addressed the idea that hot storage is definitely mandatory in order to provide leeway and speed necessary to carry out business.
Armstrong mentioned that that it does not necessarily indicate that partaking in the POS network and generating profits on staked coins does not mean that the coins have to be kept in the hot wallet.
Armstrong also disengaged the association between single key holders and whether the storage is cold or hot, and cited hardware security modules, contending that it could provide as much security as cold storage facility. Last November, Coinbase debuted OTC trading. Christine Sandler, head of sales at Coinbase, then highlighted that there was a rise in appetite from institutional players for OTC cryptotrading. Sandler stated that the accessibility of both exchange and OTC companies represented a “great benefit” for their clients.
Sandler then disclosed found that the OTC facility would probably be coupled later with Coinbase Custody. Yesterday Coinbase launched a facility to chain users’ accounts to the Coinbase Wallet App on its key platform, enabling faster disbursement from its primary account to its wallet. In future, the firm intends to permit clients to return cryptographic items from the wallet to their primary account.
