Singapore, SINGAPORE – San Francisco-based cryptocurrency exchange Coinbase has reportedly moved a whopping US$5 billion worth of retail customer holdings as part of a storage upgrade in anticipation of a significant expansion of the number of digital assets listed on its platform.
Earlier this month, Coinbase moved 5% of all BTC, 8% of all ETH, and 25% of all LTC in circulation to our next-gen secure cold storage. Here’s how we did it. https://t.co/8TJ6S97BnW
— Coinbase (@coinbase) December 19, 2018
The fund movement consisted of 5% of all Coinbase Bitcoin holdings, alongside 8% of Ethereum and a huge 25% of Litecoin. As per Phillip Martin, the current head of security at Coinbase, the fund movement took in the region of four months to plan. He went on to say:
“Regulators and auditors were involved at every stage… one of the biggest things we were worried about is that we don’t move the market with this event, which is why we went to such lengths to coordinate with regulators and manage media speculation around the movements.”
The migration process involved a number of steps, starting with new key generation where the Coinbase team traveled to a secure location and used new computers to print out keys in a number of different formats, including QR codes.
Coinbase added that this system mitigates the risk of key loss and misuse (ex. inside jobs), while still supporting “world class key governance and audit while being currency agnostic.” This new system, which has been in the works for months, will likely play a key role in the startup’s underlying mission to build an open financial system for the world.