Solana, a high throughput web-scale blockchain, announced on August 18, 2020, a strategic partnership with Coinbase Custody, a registered custodian and fiduciary under New York State Banking Law, that would allow Coinbase Custody to list Solana’s native token SOL.
Both Solana and Coinbase Custody were working together for quite some time over improving speed and increasing the security of decentralized finance (DeFi).
Under this partnership, Coinbase Custody will integrate the Solana blockchain. On the other hand, holders of Solana’s cryptocurrency wallets TrustWallet and SolFlare will be able to store their SOL tokens in the offline cold storage system provided by Coinbase Custody.
The reason for Solana’s partnership with Coinbase Custody is the benefits it brings to institutional investors. Institutional investors often face problems in the custody of new crypto assets due to its complexity.
The insurance policies offered by Coinbase Custody allow larger institutions to custody SOLs more safely and securely. Furthermore, through features like staking, large institutions can participate in the blockchain network.
Coinbase Custody implements the strictest security protocols for crypto assets, which is why it has earned the reputation of being one of the most trusted custody providers among crypto traders and institutions such as Grayscale.
Before this partnership happened, Solana was in the news for another good reason. In July 2020, the crypto exchange FTX announced to launch its decentralized exchange Serum on the Solana blockchain. With enhanced security, lower trading cost, and faster transaction speed, Solana is the ideal choice for launching Serum, said FTX CEO Sam Bankman-Fried.
SOL value witnessed a jump of 26 percent just after its partnership was announced with Coinbase Custody.
With this partnership, SOL will now be available on Coinbase Custody in addition to cryptocurrency exchanges Binance and FTX. 2020 has been the year of several strategic partnerships for Solana, including those with Chainlink, Terra, KIN, and the latest being Coinbase Custody.
