Coinbase now holds 25% of all Litecoin and 5% of all Bitcoins in circulation

Cryptocurrency exchange based in San Francisco Coinbase it is said to have moved a whopping $ 5 billion worth of retail holdings as part of a storage upgrade in anticipation of a significant expansion in the number of digital assets listed on its platform.

Earlier this month, Coinbase transferred 5% of all BTCs, 8% of all ETHs and 25% of all outstanding LTCs to our next generation secure cold storage. Here's how we did it. https://t.co/8TJ6S97BnW

– Coinbase (@coinbase) December 19, 2018

According to a recent blog post, Coinbase currently holds at least 5% of all Bitcoins (BTC), 8% of all Ethereum (ETH) and 25% of all Litecoin (LTC) In circulation. The $ 5 billion transfer took about four months to plan, said Philip Martin, Coinbase's security manager, as the company is implementing a fundamentally new architecture.

"Regulators and auditors have been involved in every phase … one of the biggest things we've been worried about is that we do not move the market with this event, which is why we've gone so far to coordinate with regulators and manage media speculation around the movements, "Martin say CoinDesk.

The migration process involved a series of steps, starting with a new generation of keys where the Coinbase team traveled to a safe place and used new computers to print keys in different formats, including QR codes .

From there, Coinbase applied a technique called Shamir's Secret Sharing where the keys are divided and combined with other parts to allow secret sharing. These are then put into collectors, now worth billions of dollars, which are further divided between various safe positions. These binders require that multiple Coinbase employees work together via phone to unlock and access the stored cryptocurrency.

While this method seems extended and can be replaced in part by multi-signature portfolios, Coinbase notes that not all of its resources currently support multi-sig, forcing them to take advantage of the strategy mentioned above.

Other: Coinbase has just moved $ 5 billion into Crypto to prepare for token expansion

Related: Coinbase Pro adds another four ERC-20 tokens: Maker, Dai, Golem and Zilliqa

Disclaimer: the author of this article has participations in cryptocurrency that may be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct due diligence before making investments.