San Francisco-based Coinbase has recently proclaimed the unveiling of a wide range of products designed exclusively meant to entice institutional organizations to the briskly evolving cryptocurrency and blockchain ecosystem.
The San Francisco-based cryptocurrency exchange Coinbase announced the launch of four new products targeted at institutional investors. There is a problem, there are very few regulated platforms, and they do not facilitate services for enterprises, hedge funds, or other important institutions.
Coinbase Custody focuses on addressing the topmost concern that institutional investors have regarding cryptos - security.
As recently as May 12, CCN reported a growing brain drain of traders and experts leaving finance firms to join cryptocurrency exchanges and startups, which Coinbase is capitalizing on. Coinbase Custody will also partner with a third party auditor, which is an independent broker-dealer that is compliant with SEC regulations. It will have its base in the NY office of Coinbase having a pool of expert employees with an huge experience in the leading stock exchanges.
"Coinbase Prime will accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class", the company says.
That's the reason why Coinbase chose to develop this service, Coinbase Custody.
Initial clients include Boost VC, Meta Stable, Multicoin Capital, Polychain Capital, Autonomous Partners, Scalar Capital, 1confirmation and Walden Bridge Capital.
By guiding clients through the onboarding process and advising on execution strategies, the Coinbase Institutional Coverage Group will offer personalized white-glove service and help institutional investors navigate the increasingly complex world of crypto asset investing.
Along with the Coinbase Custody, Coinbase will be introducing "Coinbase Markets" by setting up a new engineering office in Chicago in order to continue developing its electronic marketplace. This Coinbase product will be in charge of bringing on new clients.
Coinbase Markets is another feature that will create a centralized liquidity pool for all the products on the platform of Coinbase.
Coinbase Prime is going to be a separate trading platform only for institutional investors. The custodial services will enable users to store large amounts of digital currencies whereas the enhanced trading capabilities including margin trading and risk management will allow the customers to use borrowed money. "There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs", said Adam White, Vice President and General Manager of Coinbase Institutional. The group will be based out of Coinbase's New York office and touts an employee pool with impressive experience in the New York Stock Exchange, Morgan Stanley, plus regulatory bodies like the SEC and CFTC.