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Coinbase Stores A Total Of 966,230 BTC In The Cold Wallet

Recent reports indicate that Coinbase has a total of 966,230 Bitcoin stored in its main cold wallet. Coinbase is one of the leading cryptocurrency exchanges across the globe. Over time, the exchange has gradually become like a bank. At the moment, Coinbase keeps a high number of deposited cryptocurrency assets.

More Than $7 Billion Of BTC In Custody

A question of how much crypto assets each of the operating crypto exchanges hold in their cold wallets have has arisen in the past. Coinbase leads internationally as the largest crypto exchange hub in terms of the number of kept crypto assets.

According to data obtained from BitUniverse, Coinbase is at the top by a huge margin in its main crypto holdings. The total number of Bitcoin that this crypto exchange giant holds is about 966,230 BTC. This translates to about $7.1 billion.

All these cryptocurrency assets are under the custodial services by Coinbase. However, it is important to note that Coinbase does not have direct access to these assets. But despite all that, it still holds the private keys.

Other Top-Rated Crypto Exchanges

A number of other top-rated crypto exchanges lag behind Coinbase. But besides that, they still have sizeable cold wallets from its own funds and the depositors. One of them is BitMEX, which boasts of a total of 265,140 Bitcoin. This translates to about $1.94 billion.

The other one that follows closely is Bitstamp with a total of 146,120 Bitcoin, which is an equivalent of $1.67 billion. Bitfinex and Kraken are the other top rated exchanges in terms of number of assets in their custody. They have 146,120 and 136,780 Bitcoin respectively. Coincheck and Bittrex are also in the list with 35,090 and 131,340 Bitcoin in that order.

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Could There Be Any Security Risk?

Based on the point of view of many market users, this might be seen as a failure of proper decentralization. When it comes to security breaches, there are a number of things that should be looked at. There are huge sums of holdings that are managed by just some few entities and exchanges.

Some have observed that this new development is a sign that the exchanges are becoming like banking institutions. Therefore, they represent a major problem in the whole market. But this might not be a problem for long, since most exchanges are now taking the decentralization path.

Exchanges Moving The Decentralized Path

Binance is one of the firms that introduced its decentralized exchange this year. It has indicated plans of transitioning fully just in due course. Coinbase, however, has not unveiled such decentralized dreams.

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