The custodial tool of San Francisco-based crypto exchange and wallet services platform Coinbase, Coinbase Custody has completed its first OTC trade (Over-the-Counter) from cold storage, an offline wallet provided for storing Bitcoin. The move indicated that Coinbase Custody is now directly integrated with Coinbase’s OTC desk, which allows customers to use the OTC desk to price and confirm trades prior to moving funds. According to the reports, the product offers easy and abrupt liquidity on users’ offline funds, which means it now takes less time for Custody users to get access to their funds and keep away from the waiting period to access them.
Last month, Coinbase’s Co-founder and CEO Brian Armstrong reported about four common misconceptions on Crypto solutions. His arguments addressed the perception that hot storage is always essential for providing the flexibility and pace required to implement trades. Armstrong further stated that partaking in PoS network (Proof-of-Stake) and gaining returns on staked coins doesn’t essentially implement the latter requirement to be stored in a hot wallet. Moreover, he unclasping the relationship between single-key holders and whether storage is hot or cold also cited hardware security modules that they can come close to the cold storage’s security. In November last year, Coinbase introduced OTC trading, when Christine Sandler, head of sales at Coinbase expressed that an augmented demand for OTC Crypto trading from institutional players. He further added that the availability of both OTC and exchange business was an enormous advantage to their clients. In addition, Sandler pointed out that the OTC service was possible to be integrated with Coinbase Custody at a later date.
Moreover, the crypto exchange and wallet services platform launched a service last day to link users’ accounts on its main platform to its Coinbase Wallet app. Through this platform, users can quickly transfer their crypto to the wallet from the main account. The company is also planning to enable its users to send crypto back to their main account from the wallet.