Published: Thu, May 17, 2018
Business | By Kate Woods

Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products

Coinbase VP Hopes to Lure Institutional Investors With New Crypto Products

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. In fact, in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency.

Coinbase Inc. became the best-known cryptocurrency exchange in the bringing Bitcoin to the masses.

This is a brand new online interface to Coinbase's trading platform. They will be offering services which will combine the platform's cryptocurrency excellence along with third-party auditing and financial reporting validation.

The first product, Coinbase Custody, allows institutions to store cryptocurrencies in crypto vaults. Finally, Coinbase is announcing an institutional coverage group headquartered in New York City to provide the highest level of service to clients. 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.

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"There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs".

The Coinbase Custody will be a secure option for crypto storage that will be completely compliant with the United States legislation.

Coinbase Markets will open an engineering office in Chicago and will introduce features such as low-latency performance, on-premise data colocation services, and settlement and clearing services. Coinbase Custody partners include Autonomous Partners, Meta Stable, Multicoin Capital, Polychain Capital, Scalar Capital, Walden Bridge Capital, Boost VC and 1C. The exchange expects Coinbase Prime to accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class.

This may provide institutions with the help necessary to take cryptocurrency investment seriously, and given the potential profit the market offers, it is unsurprising that Coinbase wants a slice of the action.

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Coinbase Prime is a platform with all the bells and whistles institutional investors are used to, and by the end of the year it should have advanced tools such as margin trading, algorithmic orders and multi-user permissions. The Institutional Coverage Group will be focusing on providing best services to its institutional clients by providing sales, trading, research, market operations, and support service to its clients.

The Tribune report cites Coinbase's desire to "be close to burgeoning digital currency markets, big investors", and "a vast pool of local talent" for the company's decision to launch an office in Chicago.

While Coinbase has said it doesn't consider tokens on its exchanges to be securities, the regulatory view on that is hazy.

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