Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
Coinbase Prime brokerage services will offer custodial, data, trading, analytics, and other solutions to its clients. This service will provide access to 12 different regulated exchanges.
Crypto exchange Coinbase Global Inc (NASDAQ: COIN) has been working on expanding its crypto services in the market. In the latest announcement on Tuesday, May 25, the NASDAQ-listed exchange noted that it will be offering its Prime brokerage services to institutional investors. This brokerage service provides custodial, data, trading, analytics, and other solutions to its clients. With Coinbase Prime, institutional clients get access to the pricing on 12 different regulated exchanges. Thus, this unit will offer an umbrella of services including detailed trade cost analysis, smart-order routing, etc. Besides, they also get support from Coinbase’s account management and trading teams.
Coinbase Prime basically caters to clients’ specific requirements and services required for participating in the crypto space. It also provides the necessary tools and services required to help financial institutions, institutional investors, or companies put crypto on their balance sheets. The official announcement notes:
“Coinbase has reimagined our Prime offering based on feedback from hundreds of clients to bring the first integrated product offering to market. We are bringing trading, algos, smart order routing, along with one of the strongest custody offerings in the industry — building our institutional product suite to provide institutions with the most seamless, intuitive, and trusted solution to manage crypto assets”.
Currently, Coinbase serves around 8000 institutional clients while managing over $122 billion worth of digital assets. Being one of the largest US crypto exchanges, it generates nearly 5-7% of its revenue from institutional clients. Thus, retail investors contribute a massive chunk of its revenue. Coinbase is now looking to expand its services and portfolio for institutional clients.
Coinbase Prime – Features and Benefits
Let’s look at some of the interesting features that Coinbase Prime will bring for its customers.
- Facilitating seamless transfers between the trading balance and segregated cold storage.
- Access to over 10 trading venues for deep liquidity.
- Smart order routing to automatically route client orders to the venue with the best prices.
- Minimizing market impact and slippage using advanced algorithms.
- Providing transparency on trade execution with detailed trade cost analysis reports
- Offering crypto native features like governance and staking.
- Sub-accounts, enhanced user roles, and fine-grained permissions.
Last month in April 2021, Coinbase became the first crypto exchange to go for a public listing on the NASDAQ exchange. The crypto exchange pegs the valuation of $63 billion as of now.