The amount of assets held by Coinbase’s custodial service has increased from $6 billion to $20 billion since April of this year, according to Brett Tejpol, Coinbase’s head of institutional sales.
„We have seen an explosive growth in interest. I joined the team in April, when the institutional assets were $6 billion. Today this is more than $20 billion, more than tripling. Now the account in the Bitcoin Revolution scam inflow of funds mainly to Bitcoin has already gone to billions,“ said Tejpol in a recent conversation with the consulting firm Heidrick & Struggles.
He linked this success to the takeover of Tagomi’s Coinbase crypto-broker.
„Our trading volumes have grown 20 times since the beginning of the year. Tagomi has improved our ability to serve institutional clients. They are focused on applying an intelligent application acceptance system and algorithmic execution,“ explained Tejpol.
Among other reasons for the growth, he mentioned the partnership with JPMorgan and Deloitte. According to him, for two years these organizations have been conducting due diligence on the company’s ability to properly conduct KYC and AML checks.
The Coinbase representative stressed the importance of supporting the crypt currency space by such major players as Paul Tudor Jones, MicroStrategy and PayPal.
„For large banks, hedge funds and charitable foundations that have been left out, the arrival of PayPal is a kind of signal. It provokes a second wave of institutional adoption of digital currencies,“ believes Tejpal.
In its latest letter, Pantera Capital said that PayPal and Cash App customers completely withdraw all bitcoins produced daily by the miners.
In the analytical company Chainalysis the current rally of bitcoins was explained by the active demand of institutional investors.