Coinbase lures high-end investors, brokers with new cryptocurrency services

Thursday, 17 May, 2018

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.

Coinbase announced on Tuesday that it plans to launch a new suite of institutional product offerings to facilitate their cryptocurrency investment and trading needs.

The latest cryptocurrency custodian that will operate in close association with the SEC to establish the most secure crypto storage solution available.

The exchange has launched Coinbase Prime, a new platform meant to provide a suite of tools and services to institutional investors who are specifically trading cryptocurrency.

As institutional capital begins to enter the blockchain ecosystem at high speed, Coinbase is positioned to function as a driving force behind adoption and the inevitable maturation of the crypto market.

Because of this new demand, the cryptocurrency exchanges of the world are competing for this new market. They will be using its Custody service for hedge funds, which now supports third-party auditing and financial reporting validation. Also, the arrival of bigger financial participants in the crypto market can possibly have instigated Coinbase to develop these initiatives.

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. Coinbase Markets will introduce new features such as on-premise datacenter location, institutional connectivity and access, low latency performance, and settlement and clearing services over the year.

Coinbase Rolls Out Crypto Custody Product for Institutions

The final product being offered is Coinbase Institutional Coverage Group. It will have its base in the NY office of Coinbase having a pool of expert employees with an enormous experience in the leading stock exchanges.

The launch partners of this new platform will be 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.

"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", said Paul Bauerschmidt, Product Lead, Coinbase Markets.

Coinbase Markets will be an electronic marketplace that will be run from Chicago and will provide customers with a centralized source of liquidity for all investors.

Along with the other fresh offerings, Coinbase announced it will be opening a new office in Chicago to grow its Markets platform and accommodate the liquidity needs of institutional clients.

Coinbase is not the only firm looking at targeting Wall Street with new product offerings.

The last announcement made by Coinbase is regarding its Institutional Coverage Group, headquartered in the NY office.