Coinbase Custody had announced that they are storing institutional investors' funds in a cold storage while only exposing Coinbase's own funds for bonds. I'm trying to understand how they are executing this, but I'm not specific to Coinbase's implementation.
As I understand, the way Tezos works is that we need to have a hot TZ account that is a manager account to a KT1 account. So the act of creating the KT1 account and transferring the funds there to delegate, the funds cannot technically be in cold storage?
Is Coinbase not truly using a cold storage or is there a way to create a true cold storage while delegating? Or maybe do we call using a hardware wallet like Ledger or Trezor as "cold storage".