May 27, 2018

Coinbase Launches Four New Products for Institutional Investors

17 May 2018, 04:09 | Cesar Cruz

Coinbase Rolls Out Crypto Storage Service For Financial Institutions

Coinbase Rolls Out Crypto Custody Product for Institutions

Coinbase is announcing Coinbase Prime, a new platform designed specifically to provide a suite of tools and services that institutional investors rely on when trading cryptocurrency. In fact, in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency.

Given the recent interest in blockchain and cryptocurrency from giants like NASDAQ, The New York Stock Exchange, Goldman Sachs, and JP Morgan, it is hardly surprising that Coinbase is seeking to diversify its streams of revenue by catering to Wall Street.

Coinbase Custody combines its cryptocurrency security with third-party auditing and financial reporting validation that operates at a standard of an SEC-regulated custodial-broker-dealer. Additionally, Coinbase feels that these products will help increase awareness and adoption by mainstream investors in the cryptocurrency market.

The most popular Bitcoin trading platform announced changes Tuesday that were created to attract institutional investors to its exchange.

"There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs".

The launch partners of this new platform will be 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital. Over the course of the year, Coinbase will be introducing new features such as "low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services".

Coinbase is known for providing a large pool of liquidity for all Coinbase products, and this is to be continued with the introduction of Coinbase Markets.

Coinbase Rolls Out Crypto Custody Product for Institutions

White further claims that the Custody service will be fully regulated and compliant with the US Securities and Exchange Commission (SEC).

The second product announced today was Coinbase markets, an online marketplace for liquidity based out of a new office in Chicago.

"Coinbase Prime will fill a missing piece of critical infrastructure needed for institutions", the exchange said.

This is a new group, based in Coinbase's New York City office, that will be focused on providing a personalized "white glove" service to institutional investors.

The platform, which will be developed over the next 12 months, will include lending and margin financing products, as well as market data, research offerings, and both high and low-touch execution services like over-the-counter (OTC) trading and algorithmic orders to qualified clients.

According to the Coinbase CEO, Brian Armstrong, an increasing number institutional investors are becoming interested in trading (or investing in) - he estimates that around $10 billion in institutional money is sitting on the sidelines, waiting to be unlocked - and that they are saying that the biggest barrier to entry for them is the lack of a digital asset custodian service that they can trust.

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