Coinbase Custody Adds Support for KIN, XYO Tokens for Institutional Investors
The addition of relatively obscure assets, KIN and XYO, puzzled the crypto community.
Coinbase Custody announced the addition of the new KIN token of the Kik project, as well as recently adding XYO Network (XYO). Coinbase Custody offers secure storage for various assets for cryptocurrency investors who do not want to manage their own storage solutions.
“As more networks launch tokens, institutional investors face a critical challenge in finding ways to securely hold each new unique asset. Coinbase Custody solves this problem by offering secure and trusted custody solutions for new network launches,” Coinbase explained on its blog.
In the past, traders sometimes kept their funds with exchanges, but there are no clear custodial obligations when it comes to safekeeping digital assets. Usually, a loss or hack on an exchange means traders absorb the loss in some form.
KIN and XYO Network are unique assets, in offering real-life world cases. KIN is intended as a reward and in-chat token while XYO is a network of real-world oracle of coordinates and locations.
KIN is an asset still in transition, after launching its own network using the Stellar technology. But KIN is independent of Stellar and is not a Stellar-based token. Users can switch to the new asset by registering their ERC-20 KIN tokens.
XYO is still an Ethereum-based token, and uses the same storage mechanism as other assets of this type, making it an easier addition for Coinbase Custody.
The most significant recent addition is Tezos (XTZ), where custodial services will be offered along with a staking mechanism, to allow rewards for those who want to keep the coins in long-term storage. In total, Coinbase Custody now supports 21 digital assets belonging to various networks.
Following the news, the price of KIN moved up by more than 9% overnight, up to $0.000046. XYO traded at $0.0019, up more than 10% overnight, as both assets also received a boost from the general market recovery.