Crypto exchange Coinbase has moved 5 billion dollars worth of bitcoin, ethereum and litecoin into cold storage. The transfer included five percent of all existing BTC, 8 percent of all ETH and 25 percent of all LTC. The American crypto exchange made the move in order to securely store currencies that are not immediately needed.
“Our most critical responsibility is the security of the assets that our customers entrust to us. The gold standard of cryptocurrency asset security is offline, or ‘cold’ asset storage. Coinbase stores 98% or more of our customer assets in our cold storage system.”
Coinbase has issued a fourth and more advanced version of their cold storage. It’s supposed to prevent problems of lost keys, misuse by bad actors – which includes insider threats – and is still capable of providing regular audits.
According to Coinbase their cold storage is secure because it requires physical actions of multiple people across the world to gain access and enable a transaction. All keys are generated in a highly controlled and well audited generation process. The company maintains its distributed key storage and transaction process as well.
Coins that are being moved into storage, can be sent to the addresses generated in the offline storage location. Therefore there’s no need to actually go to the bank… this is only needed when the money needs to be removed from the addresses.
Their latest storage system can be used for every cryptocurrency in existence. This comes in handy, because Coinbase has been incorporating multiple currencies into their platform lately. Among the new currencies are Ethereum Classic (ETC), Basic Attention Token (BAT), 0x Protocol (ZRX), and Zcash (ZEC).
Late October the cryptocurrency exchange was valued at 8 billion dollars, as it added another 300 million dollars from an investment round. Coinbase is one of the biggest names in the world of crypto.
Also published on Medium.