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Regulated Crypto Custody Is (Almost) Here. It’s a Game Changer

  • Service could open market to bigger investors, boosting prices
  • ‘It will unlock a big wave of capital,’ fund manager says
A Bitcoin gavel sits on a desk at the Coinbase Inc. office in San Francisco, California.

A Bitcoin gavel sits on a desk at the Coinbase Inc. office in San Francisco, California.

Photographer: Michael Short/Bloomberg
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Hedge fund manager Kyle Samani embraces his job making multimillion-dollar bets on the wild market for cryptocurrencies, but he’s long contended with a headache: Ensuring his holdings aren’t stolen.

Samani, a managing partner at Multicoin Capital, hopes to offload that task soon. He’s among a small group of institutional investors who have been testing Coinbase Inc.’s new crypto-custody service, one of scores of such offerings in development. Some services are now almost ready -- with huge implications for the market’s future.