The new products address numerous issues that big investors such as hedge funds face when trying to enter the cryptocurrency market, providing liquidity, safe storage of assets, quality support and advanced products such as OTC (over-the-counter) and margin trading.
During the last few months, more than 100 hedge funds have announced their intentions of investing in cryptocurrencies, something unseen in the market until recently.
Coinbase is launching a new suite of tools tailored for high-end investment opportunities in cryptocurrency. In order to ensure that Coinbase complies with the rules set by the U.S. Securities and Exchange Commission (SEC), the exchange is offering the custodial service in partnership with an "an SEC-regulated broker-dealer". This office will serve as the home for the Coinbase Markets team and enable Coinbase to continue offering the most performant and reliable cryptocurrency exchange.
San Francisco-based Coinbase has announced the launch of a range of new products created to attract institutional organizations to the rapidly evolving cryptocurrency and blockchain ecosystem. This particular feature has been requested for a long time by institutional investors and it could be one reason why the six-year-old virtual currency platform has taken the decision.
"Coinbase has leveraged the company's deep experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available", the exchange said. 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".
"We really pride ourselves on being the most trusted, the most secure venue, within the cryptocurrency space", said Eric Scro, Coinbase's vice president of finance.
Coinbase's launch partners include 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.
At Coinbase, we welcome these developments as they help accelerate the world's adoption of cryptocurrency by bringing new capital, greater awareness, and additional infrastructure to the space.
In addition, Coinbase intends to open a new engineering office in Chicago to expand Coinbase Markets, the firm's cryptocurrency market platform.
But the market did not offer institutional grade products to meet the market demand.
The Coinbase Custody will be a secure option for crypto storage that will be completely compliant with the USA legislation.
Coinbase Prime is going to be a separate trading platform only for institutional investors.
The final piece of the puzzle for Coinbase is the establishment of the Coinbase Institutional Coverage group, which will be established in New York City as a hub for sales, sales trading, research, market operations, and client services.