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Coinbase: New Assets for Custody Service

Posted on the 07 November 2018 by 2ndgreenrevolution @2ndgreenrev

Coinbase is again thinking about the listing of assets - for Coinbase Custody. This time even XRP is included.

The announcements had no significant influence on the Bitcoin loophole

"Coinbase lists..." is the superlative to "Exchange xyz lists...". Accordingly many see in a review from Coinbase the gospel of the bagholder. It is understandable: In this context, Bitcoin loophole experienced a price jump of 20 percent. It was only recently that considerations about a listing of Stellar, Cardano, 0x or BAT were sufficient to lead to a short price rally.

Like a cynical running gag these statements and listings had one thing in common: Ripple or XRP were not mentioned - much to the displeasure of the community around Ripple. To explain why some assets were listed and others weren't, Coinbase introduced its so-called Digital Asset Framework. This framework explains which properties a crypto currency must have in order to be considered for a listing.

A few days ago it was therefore surprising that Coinbase now takes a closer look at 37 assets - including XRP. Together with the longer-supported ERC20 tokens, one gets the impression that Coinbase wants to build up a large collection of supported assets. But whether projects like Tezos or Telegram correspond to the Digital Asset Framework can be doubted. However, a closer reading is noticeable: These are possible assets for Coinbase Custody. A listing for GDAX or other Coinbase products is not planned.

Coinbase Custody: Not comparable with the news spy

Coinbase Custody is a service that offers the custody of large sums of money in the crypto area. BTC-ECHO has previously reported on this service. This is of particular interest to institutional investors, for whom the security of the news spy is of paramount importance. This topic is so interesting for larger investors that a few months ago it was also a topic at a seminar on crypto funds at the Frankfurt School of Finance. This is in partnership with ETC, this time not Ethereum Classic, but a SEC registered broker and member of FINRA, which could also be attractive for institutional investors.

It is important to point out that a listing of the 37 assets with other Coinbase services is not currently being considered. Furthermore an asset must correspond to the Digital Asset Framework for a real listing. For XRP it means to wait and see. Even if one can certainly interpret the separation by name from Ripple as a step that does justice to the Digital Asset Framework, the token concentration in Ripple's escrow - currently still over 52 billion XRP - will still be an argument against a listing. But since Ripple has started a decoupling of XRP one can be curious where the journey goes here.

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