Coinbase will add $500m in crypto to its balance sheet

Coinbase has also partnered with a Japanese bank to broaden its customer base

Coinbase (NASDAQ:COIN) is set to put $500m worth of cryptocurrencies on its balance sheet having received approval from its board.

The Nasdaq-listed crypto exchange also said it intends to reinvest 10% of its profits into holding bitcoin and other cryptocurrencies.

Coinbase recently revealed it is holding around $365m worth of crypto, as part of its filings.

The firm added that it might raise its allocation in the future and expects that more companies will hold crypto on their balance sheet as the industry grows. 

Coinbase also partnered with Mitsubishi UFJ Financial Group, in the hope that it can use its customer base to secure itself in a key market for digital asset trading.

MUFG’s 34m domestic customers will get exclusive access to Coinbase’s services through their existing bank accounts, according to the terms of the deal.

MUFG’s customer base, who may not otherwise have been interested in crypto, will now be able to buy and sell bitcoin and other digital currencies.

Coinbase’s services are solely available to MUFG clients now, however, they could be extending to customers of other banks if the deal proved to be a success.

The Coinbase share price closed up 1.58% on Thursday.

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