Monday, 17 December, 2018

Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products

Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products
Nellie Chapman | 17 May, 2018, 04:08

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.

Specifically created to " provide a suite of tools and services that institutional investors rely on when trading cryptocurrency", Coinbase Prime will offer both lending and margin financing products, OTC trading, algorithmic trading, market data, and research products to qualified clients. There is a problem, there are very few regulated platforms, and they do not facilitate services for enterprises, hedge funds, or other important institutions.

The Coinbase Institutional Coverage Group is a product created to offer sales, trading, research, market ops as well as client services support to institutional investors.

The Coinbase Custody will be a secure option for crypto storage that will be completely compliant with the USA legislation. Paul Bauerschmidt, Product Lead, Coinbase Markets, noted: "As leaders in innovation and technology, Chicago and Coinbase are perfectly suited in working together to help shape the present and future of digital currency".

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. 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.

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

Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products

"The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space".

The custody question - how to securely hold digital coins in an era of rampant hacking - has bedeviled money managers ever since cryptocurrencies emerged as an asset class. Coinbase began outlining efforts to provide a solution in November. During this year, Coinbase will be offering lending and margin financing products, high touch and low touch execution service like OTC trading and algorithmic orders, and new market data and research products.

Initial clients include Boost VC, Meta Stable, Multicoin Capital, Polychain Capital, Autonomous Partners, Scalar Capital, 1confirmation and Walden Bridge Capital.

Most of these products will be for institutional investors although some of them will also be made available to all.

These institutions can bring "new capital, greater awareness and additional infrastructure to the space", it said.

Finally, the Coinbase Institutional Coverage Group will work from Coinbase's New York City office to provide support to clients including research and market operations.