WisdomTree has appointed Coinbase Custody as the second custodian for its physically-backed Bitcoin ETP.
The mandate is part of a multi-custodian approach adopted by WisdomTree for the crypto vehicle.
The ETP, which was launched in December 2019 and is listed on the Swiss Exchange, has an existing custody arrangement with Swissquote.
Coinbase's custody service uses the same cold storage architecture adopted for the crypto assets of its own customers in addition to an insurance policy for investors.
The use of multiple custodians is designed to offer more security to investors in what is still a nascent but rapidly growing market within the institutional world, stated WisdomTree.
"Digital currencies are here to stay," said Jason Guthrie, head of capital markets and digital assets, Europe, WisdomTree. "We believe the development of a multi-custodian model is key to enhancing investor confidence."
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