Institutional assets under Coinbase Custody rise to $20 billion

The volume of assets held in Coinbase’s custody service has risen from $6 billion to $20 billion since April this year. These figures were provided by Coinbase’s head of institutional sales, Brett Tejpol.

“We have witnessed explosive growth in interest. I joined the team in April, when institutional assets were $6 billion. Today it’s over $20 billion. More than a threefold increase. The inflows are predominantly into Bitcoin and have already reached billions,” Tejpol said in a recent interview with consulting firm Heidrick & Struggles.

He linked this success to the acquisition of Coinbase’s crypto broker Tagomi.

“Our trading volumes since the beginning of the year have grown twentyfold. Tagomi improved our ability to serve institutional clients. They are focused on applying an intelligent order-routing system and its algorithmic execution,” Tejpol explained.

Among other reasons for the growth, he cited partnerships with JPMorgan and Deloitte. According to him, these organisations over two years conducted comprehensive legal due diligence into the company’s ability to conduct proper KYC- and AML checks.

A Coinbase spokesperson emphasised the importance of backing the crypto space by major players such as Paul Tudor Jones, MicroStrategy and PayPal.

“For large banks, hedge funds and charitable foundations that have stayed on the sidelines, PayPal’s entry is a signal of its kind. It is prompting a second wave of institutional adoption of digital currencies,” Tejpol said.

In Pantera Capital’s latest letter, said that PayPal and Cash App clients are withdrawing from circulation all bitcoins mined daily by miners.

In Chainalysis, the current Bitcoin rally was explained by active demand from institutional investors.

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