Coinbase Custody owns 635,000 BTC on behalf of Grayscale

According to a message by Coinbase Custody CEO Aaron Schnarch, the institutional investing arm of Coinbase Global, Coinbase Custody Trust, controls 635,000 BTC on behalf of Grayscale Bitcoin Trust. Grayscale, a digital investing business has also failed to provide evidence of reserves, claiming security concerns.

As of September 30, Coinbase Custody owns over three million ETH for Grayscale Ethereum Trust and 11.9 million ETC for Grayscale Ethereum Classic Trust, according to a note published as investors become more worried about the possible contagion of FTX’s demise.

As a result of recent incidents, “investors are naturally questioning further into their crypto investments,” according to Grayscale’s tweet, which emphasised the safety and security measures of the company’s digital asset offerings.

The digital investment titan noted, “Coinbase routinely conducts on-chain validation,” but would not disclose a cryptographic proof-of-reserve owing to “security concerns.”

“We recognize that the previous statement in particular will disappoint some,” stated Grayscale. “However, investor fear is not a cause to break the complicated security measures that have kept our clients’ funds secure for years.”

Grayscale’s digital asset products are structured as independent legal companies, which “prohibit lending, borrowing, or otherwise restrictive the digital assets underpinning the products.”

Also Read: Singapore’s Central Bank Says FTX Fallout Cannot Be Protected Locally

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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