The cryptocurrency exchange Coinbase reportedly scored a $20 billion hedge fund client for its digital assets custody business for large institutional investors. The fund was not named.
The Coinbase service, begun July 2, is secured through an independent broker, Electronic Transaction Clearing, that operates in compliance with the U.S. Securities and Exchange Commission. That’s important considering the SEC’s less-than-clear stand on which digital assets it can regulate.
That’s also important because earlier in July Coinbase announced the SEC and Finra, the self-regulator for the brokerage industry, had approved acquisitions that would allow Coinbase to operate as a broker. Turns out that was not the case. Read more here.