On 22nd January 2020, US-based crypto exchange Coinbase added Matic native coin to its custodial service as the new digital asset, a move that will now enable institutional firms that use Coinbase Custody to deposit or withdraw Matic.
Coinbase Custody has a pool of about 40 assets out of more than 3000 digital assets in the market today due to its extremely selective process. Matic will benefit from Coinbase Custody’s regulated and insured custodial storage services and probably see more activity in trade volumes and an increase in the trading price.
Matic’s addition to Coinbase custody comes as a no surprise as Coinbase is an equity investor in the Matic Network’s startup company.
Coinbase Custody Solutions Targets Startups Offering Services with High Client-Demand
Coinbase started Coinbase Custody to service the growing institutional interest in digital assets, which has been on the rise since 2018. As the most traded and popular cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) attracted many investment funds looking to invest in the trend of the digital asset.
The increase in the exploration of blockchain-based solutions by all sectors, including tech companies, governments, financial, and academic institutions, has made increased demands for blockchain scaling solutions similar to those offered by Metric Network. Coinbase stated:
“The number-one driver of our decision to support assets is client demand — we prioritize the assets our clients need. In addition to client demand, we have developed a robust internal process to evaluate and approve assets for Coinbase Custody”.
Matic Network is a scaling algorithm that targets institutions and enterprises that are looking to venture into blockchain-based solutions. By increasing the speed and throughput of leading blockchain networks like Ethereum and Tezos, Matic enables them to process more transactions per second.
Matic Will Benefit from Safe, Regulated Staking Services for Offline Assets
As third party providers, Coinbase will store and safeguard large quantities of the Matic native coin as the Matic Network continues to explore ways to make public blockchain networks to withstand numerous transactions at high speeds.
Matic will now join the list of other digital assets that Coinbase supports. As the first institutional-grade service provider that offers qualified staking services for offline assets, Coinbase also became the first to enable OTC trading straight from cold storage wallets.
This enables their institutional clients to take part in all the faces of the crypto-economy, such as trading, governance, and staking while keeping their offline assets secure and protected with sufficient regulation.
Matic Network, which had an interesting year in 2019, has gone through some revolutionary and downtime moments and now has the backing of the two biggest crypto-exchanges in the world.
In April 2019, Binance Launchpad, the first Initial Exchange Offering (IEO) conducted a sale of 10000000000 MATIC tokens for $5000000 in lottery tickets. The move saw a tremendous increase in its trading volume in the next few months following the auction.