Coinbase goes after Wall Street with new Cryptocurrency tools

Daniel Fowler
May 17, 2018

Four new Coinbase products are being launched by the popular exchange with the hopes that they will attract institutional investors into the cryptocurrency market.

Coinbase is launching a new suite of tools tailored for high-end investment opportunities in cryptocurrency.

Recently, a huge number of hedge funds revealed their plans to go in for crypto trading and investing which is an evidence of growing attention to the crypto sphere from the side of institutions and financial services companies.

First, the platform announced the Coinbase Custody which will be launched in partnership with leading institutions. Already, Coinbase stores over $20 billion worth of cryptocurrency for its customers - now, Coinbase Custody will be the specific product in charge of this, partnering with an SEC-regulated broker-dealer.

"As institutions continue to enter the cryptocurrency market, we are committed to building the products and services that uniquely meet their needs".

Coinbase today announced new product offerings for institutions, created to better meet their rapidly growing demand to trade and invest in cryptocurrency. Finally, Coinbase is announcing an institutional coverage group headquartered in New York City to provide the highest level of service to clients. Coinbase is planning to improve this service by opening an engineering office in Chicago.

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According to industry experts, as the cryptocurrency market matures and people find ways to work within regulatory frameworks, institutional investors will eventually move into the cryptocurrency industry too. Partners of this initiative include Metastable, Polychain Capital and Walden Bridge Capital, among others.

Coinbase Prime will accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class.

The Coinbase Institutional Coverage Group will also sell the Coinbase service to additional investors who want to start investing in crypto. 'Over the course of the year, Coinbase Markets will introduce new features like low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services.

The second new product is the company's new electronic marketplace called Coinbase Markets that will offer a centralized pool of liquidity for all of Coinbase products.

Coinbase Prime is going to be a separate trading platform only for institutional investors. The support includes "sales, sales trading, research, market operations, and client services support", White writes.

The Coinbase Prime solution powered in collaboration with Coinbase Markets and Coinbase Custody exclusively developed and created to "provide essential tools and services that allow institutional investors trading in cryptocurrency", it will also offer both lending and margin financing products, OTC trading, algorithmic trading, market data, and research products to qualified clients, as per the sources.

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