By adding new crypto assets, Coinbase is poised to increase its revenue from custody services. This is significant because a growing number of companies are offering cryptocurrency trading, which has been a lucrative business for Coinbase, but where margins are likely to drop in the future.
A Coinbase spokesperson declined to provide a specific timetable for when exactly the custody support for the new assets will be available. The company also says plans to add all 40 of the assets are not definitive.
Coinbase is not the only cryptocurrency company to offer custody (another is Boston-based Circle), and it does not sell many of the assets it plans to store as a custodian. As such, it’s unclear how much the expansion of its custody offerings will boost Coinbase’s revenues.
Currently, Coinbase counts the funds Autonomous Partners, Polychain Cap, and Multicoin Cap among its custody customers. The company says it aims to have more than 100 institutional customers and store at least $20 billion under custody by the end of 2019.
Meanwhile, Coinbase also disclosed on Friday that traders will be able to buy and sell the asset known as Ethereum Classic beginning on Tuesday. The move comes after the company announced in June it would add the cryptocurrency, which is currently the 14th biggest, according to the site CoinMarketCap.