Matic on Coinbase may be a pipedream at this point, with the leading cryptocurrency trading platform still not supporting the Matic market on its open trading system. However, Coinbase does support Matic in its institutional crypto vault as part of Coinbase Custody.
Read on to learn about the Matic currency’s relationship with Coinbase Custody and what this means for investors and institutions.
What is Coinbase Custody?
Coinbase remains the largest cryptocurrency exchange in the United States. Custody represents a digital asset that institutional firms can use to withdraw and deposit crypto on the platform, including Matic, as of 2020. Institutions use platforms like this to acquire cryptocurrency assets through investment funds. They often favor the most traded currencies like Bitcoin and Ethereum, but the Matic Network currency can provide a secondary investment for a diverse portfolio.
Coinbase Custody doesn’t allow just any assets to be added to its list of regulated currencies. It ensures fewer than 40 types of crypto assets as part of its storage service. Matic seeded the venture in its infancy, so its seat at the table isn’t surprising.
Who Should Invest in Matic?
The Matic Network increases transaction speed on large blockchains like the Ethereum network. This means that institutions newly exploring blockchain investment solutions can utilize Matic to improve the efficiency of their new distributed ledgers. The enterprises who would most benefit from using the Matic Network through Coinbase Custody include:
- Banks and financial institutions
- Government facilities and offices
- Academic institutions
- Tech companies
Most companies fear the learning curve of investing in cryptocurrency, especially since the digital assets are relatively untested. However, a utility like Coinbase Custody can come in handy for institutions and their investors if they worry about the relative risks of acquiring these new assets. In addition, there’s very little legal jurisdiction (or potential retaliation) when it comes to stolen crypto.
Institutional investors worried about these aspects of diversifying their client’s portfolio with cryptocurrency can make great use of Coinbase Custody. The platform encourages investment while taking care of certain aspects of it, like asset management and interest dispersal. New investors may not know how to diversify investments in tokens that offer skating rewards. However, Coinbase Custody can do it for them.
Matic tokens offer another stake for Coinbase clients, elevating the network to higher status and diversifying the trading platform itself.
Matic Coinbase: The Takeaway for Investors
The Matic network on Coinbase represents a new way for Coinbase Custody clients to improve their portfolio. Institutional investors worried about the steep learning curve of a crypto portfolio should ease their burden by using the asset management services provided by Custody.
Even if investors don’t know how to disperse their client’s investments for better token coverage, Coinbase Custody does. Since Coinbase only insures about 40 out of thousands of total crypto coins out there, you can bet that Matic is a safe investment, if not one of the essential coinages currently on the market. Since Matic ties into Ethereum through Custody, a timely investment can help a client’s portfolio at the same time that it renews this still-fledgling market.