Crypto asset management pioneer Grayscale Investment, has moved custody of its cryptoassets to Coinbase. The approximately $2.7 billion turnover, which represents one of the crypto world’s biggest single-day transfers, took around 12 hours. Grayscale’s assets were previously held at Xapo.
“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,” stated Sam McIngvale, CEO of Coinbase custody. He said Grayscale was held to the same fiduciary standards as those governing banks in New York and pointed to the “deep and broad” crypto-insurance covers offered by the firm.
Coindesk reports that Coinbase will charge Grayscale based on assets under custody. The agreement is initially for three years and each company can terminate the relationship with a 90-day notice thereafter.
The increase in cryptocurrency prices has benefitted Grayscale. The investment firm grew its assets threefold from the previous quarter to hit $2.7 billion in July. That market is only expected to grow in the future, according to the firm’s estimates. Last month, it conducted a survey and found that over 36% of all US investors, or 21 million more people, were interested in buying Bitcoin.