On the second day of the Cardano Virtual Summit, Charles Hoskinson, CEO of IOHK announced a custody agreement with the major American exchange Coinbase. This will allow, from Q4, holders of ADA the ability to store their assets in Coinbase’s cold storage, while still being able to stake their funds.
Coinbase, as one of the biggest cryptocurrency exchanges in the world, has a robust institutional-grade storage solution for cryptocurrencies. The custody and security of crypto tokens remains an important topic in the space where safety is prime, and agreements like these are essential in order to drive widespread adoption of cryptocurrencies.
They all allow institutional and large investors to safely and securely manage their funds whilst also keeping in line with regulatory requirements, and now the same experience can be spread to individual users of ADA.
This will also hopefully alleviate concerns from regulators about the security of cryptocurrency which have previously hampered it from being accepted into mainstream finance.
Access to finance
Part of the security solution being offered in this agreement is also the access to the funds and the ability to stake the,. This further pushes the narratives of higher adoption and usability.
Hoskinson said: “With Cardano, we believe we can create a revolutionary solution which will be able to offer access to finance and investment to swathes of the population who have previously been shut out of the system. This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ada holders, without sacrificing what makes Proof of Stake blockchains special – being able to participate in the network.”
“We look forward to this partnership with Coinbase, and to continuing to bring cryptocurrencies closer and closer to mainstream adoption”
Sam McIngvale, Head of Product, Coinbase Custody, added: “We have been following the success of the Cardano incentivized testnet, with over a thousand registered stakepools during the testing period. We are pleased to have been selected as the custodian and we’re proud to be a full-service, regulated, comprehensively-insured, and 100% offline staking provider in crypto.
“The ability to successfully operate within a regulatory framework is essential for the long-term survival of cryptocurrencies. We are overseen by the same regulators, and held to similar capital requirements and audit requirements as a traditional financial custodian, which removes many of the perceived barriers to global acceptance of crypto.”