New York, Aug. 02, 2019 (GLOBE NEWSWIRE) -- Grayscale Investments, the largest digital currency asset manager, today announced that it has entered into agreements with Coinbase Custody to serve as Custodian for the underlying assets for each of its products, effective July 29, 2019.
Coinbase Custody will serve as custodian for Grayscale’s single-asset investment products and their underlying assets in Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Horizen (ZEN),* Litecoin (LTC), Stellar Lumens (XLM), XRP, and Zcash (ZEC), including the public quotations available to all individual and institutional investors: Grayscale Bitcoin Trust™ (GBTC), Grayscale Ethereum Trust™ (ETHE), and Grayscale Ethereum Classic Trust™ (ETCG). Coinbase Custody will also serve as custodian for Grayscale’s diversified investment product, Grayscale Digital Large Cap Fund™, which provides exposure to the top digital currencies by market capitalization and is currently comprised of Bitcoin (BTC), Ethereum (ETH), XRP, Bitcoin Cash (BCH), and Litecoin (LTC).
“Grayscale and Coinbase have led the way in providing safe, secure, trustworthy, and regulated access to digital assets. Grayscale is an established, trusted, and valuable partner to its clients and its service providers should be the same,” said Sam McIngvale, Coinbase Custody Chief Executive Officer. “As a NY State-chartered trust company, Coinbase Custody is held to the same fiduciary standards as national banks. We also offer some of the broadest and deepest insurance coverage in the crypto industry.”
Coinbase Custody is a regulated entity and an independent, NYDFS-regulated company that offers access to a secure, audited, and insured custody solution. As a qualified custodian, Coinbase Custody is a fiduciary under NY Banking Law and is licensed to custody its clients’ digital assets in trust on their behalf.
Each of the custodian agreements establishes the rights and responsibilities of Coinbase Custody, Grayscale, and each Grayscale investment product with respect to the safekeeping of each product’s digital assets. Each agreement is for an initial term of three years with a fee based on a percentage of assets under custody. During the initial term, either party may terminate for certain events described in the agreement, and after the initial term, either party may also terminate upon ninety days’ prior written notice.
The existing agreements that provide for the safekeeping of each Grayscale investment product’s digital assets will be terminated following the conversion of the custody role to Coinbase Custody.*
*Coinbase Custody does not yet support Horizen (ZEN). Pending regulatory approval, the underlying assets for Grayscale Horizen Trust will be transferred as soon as is practicable. In the interim, the assets will remain with the existing security provider.
This press release is not an offer to sell or the solicitation of an offer to sell or buy any security in any jurisdiction where such an offer or solicitation would be illegal, nor shall there be any sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
Grayscale Investments is the world’s largest digital currency asset manager with more than $2.5 billion in assets under management. With a proven track record and unrivaled experience, we give investors the tools to make informed investing decisions in a burgeoning asset class. As part of Digital Currency Group, Grayscale accesses the world’s biggest network of industry intelligence to build better investment products. We have removed the barrier to entry so that institutions and individual investors can benefit from exposure to digital currencies. Now, forward-thinking investors can embrace a digital future with an institutional grade investment. Grayscale is headquartered in New York City. For more information on Grayscale, please visit www.grayscale.co or follow us on Twitter, @GrayscaleInvest.
About Coinbase Custody
Launched in 2018, Coinbase Custody offers clients access to the secure, institutional-grade offline storage solution that has been used by Coinbase’s exchange businesses since 2012. Coinbase Custody is an independent, NYDFS-regulated entity built on Coinbase’s crypto-first DNA, offering the most sophisticated and reliable custody solution in the world. All digital assets are segregated, held in trust for the benefit of our clients and protected by an industry-leading insurance program. Coinbase Custody currently offers support for 32 assets. For more information, visit https://custody.coinbase.com/.