- The US-based cryptocurrency exchange launched a new unit in Dublin, focused on international investors.
- The cryptocurrency market is poised for further gains as institutional investors are expected to come in.
The largest cryptocurrency in the US, Coinbase, has established a new custody unit based in Dublin, to make its custody services available for international investors. The comoany made the announcement on Twitter and in the blog post:
Today we’re announcing the launch of Coinbase Custody International. Based in Dublin, Ireland, the new entity will offer the same industry-leading crypto asset storage that has made Coinbase Custody the world’s leading and most trusted crypto custodian.
Notably, the company plans to transfer all staking activities to the new unit with the aim to provide the broadest digital asset coverage as an institutional-grade custodian. According to the Coinbase statement, the dedicated subdivision in Europe will allow improving services for European customers by making them more localized and compliant with European laws and regulations.
Commenting the news in the interview with CNBC, Sam McIngvale, CEO of Coinbase Custody, noted:
In the absence of clear regulation anywhere around the world, I think folks want to be as close to home as they can be. That’s the regime that they understand and are tracking to.
He also added that Europe is one of the biggest markets for Coinbase. Europe accounts for nearly $1 billion of assets under custody out of the total amount of $7 billion. What’s more, Coinbase hopes that the new international unit would also attract investors from other lucrative regions, such as Asia.
Coinbase has a license of a chartered custodian in New York, which allows the company to hold funds on behalf of the customers. According to McIngvale, the exchange plans to obtain a European license as well to be authorized under the EU’s MIFID investment services laws.
This move is expected to attract more institutional investors into the cryptocurrency sector and thus speed up its mass adoption.
Bitcoin and all major assets are retreating within the current ranges after a sharp increase in the first half of the week. The cryptocurrency market has been firing up since the start of the year. Thus, BTC/USD is 30% higher from the January 1, and over 170% higher in the recent 12 months.
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