By
Temitope Olatunji
April 18th, 2024
By offering advanced products for institutional investors, Coinbase tries to satisfy their growing demands in the crypto sphere.
The San Francisco-based cryptocurrency exchange Coinbase announced the launch of four new products targeted at institutional investors. All the new products were developed with an aim to satisfy investors’ needs in crypto trading and investing.
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.
Coinbase will launch the following products for investors: Coinbase Custody, Coinbase Markets, the Coinbase Institutional Coverage Group and Coinbase Prime.
Commenting their new offerings, Adam White, Vice President and General Manager of Coinbase Institutional explained: “There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs”.
“Through new products like Coinbase Prime and Coinbase Custody, we’re building the necessary capability for institutions that allows cryptocurrencies to be traded and stored in a compliant, trusted and efficient manner,” added he.
Coinbase Custody is a cryptocurrency custodian that will be introduced in collaboration with an SEC-regulated broker-dealer. The company considers their new product to be the most secure solution available. Coinbase has already gained experience in storing over $20 billion of cryptocurrency on behalf of customers but earlier it hasn’t had a separate product for storing holdings.
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. This marketplace will be managed from a new office that is to be opened in Chicago.
Opening the office in this new location is a great move for Coinbase. 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”.
“Chicago is an ideal location for our newest Coinbase office and we hope our investment will continue to position the city as a growing hub for technological innovation. We look forward to adding talented engineers who are motivated by our mission to create an open financial system for the world,” said he.
Just in a couple of years, Coinbase Markets will provide additional features like settlement and clearing services, data center colocation services, institutional connectivity and access, etc. which will ensure deeper liquidity, increased performance and more efficient prices.
Moreover, thanks to a launch of Coinbase Prime, institutional investors will get a platform that will unite a complex of tools and services that are needed for crypto trading. Coinbase Prime will promote implementation of cryptocurrency worldwide via giving institutions an opportunity to get closer to this asset class.
But Coinbase wants to satisfy institutions needs not only in high quality products but also in high quality services. Having this idea in mind, the company has created the Coinbase Institutional Coverage group that will provide all kinds of support including sales trading, research, market operations services.
Let us also mention that the whole crypto market has entered a positive trend since yesterday. For example, Bitcoin has added 2.15% in a 24-hour time period and now is traded at $8,742, as it is informed by CoinMarketCap.