Coinbase has today revealed its new suite of cryptocurrency platforms targeting institutional investors. The announcement comes hand in hand with the inception of a brand new headquarters in New York City in charge of maintaining relations with Wall Street and support to new institutional investors.
Coinbase Custody provides storage utility for large amounts of digital assets and is seen as a means of partnering with an unnamed SEC-regulated broker-dealer. Coinbase are boasting six investment capital firms as partners at launch, including BoostVC, Autonomous Partners and Polychain Capital. This could also be seen as Coinbase flexing their security muscle in wake of international cyber-attacks targeting cryptocurrency exchanges.
Having the ability to obtain and store large assets naturally leads to wanting to trade them, and while Coinbase itself hosts an impressively deep liquidity pool, the new institutional version wants to build on that success.
It appears that it will be a premium-access exchange with a set of operational upgrades with direct settlement and clearing services connected to Coinbase Custody. The additional features, such as ‘on-premise datacenter colocation’ with ‘low latency performance’ have a stated intention of providing “a more efficient price discovery process to occur, creating tighter markets, deeper liquidity, and increased certainty of execution.” Great news for whales!
Coinbase Prime is the key to interfacing with Coinbase Custody and Coinbase Markets, and while for now it appears to be a fancy GUI, it is worth noting that Coinbase plans on adding lending/margin trading as well as over-the-counter (OTC) trades completely built in.
In regards to the Coinbase Institutional Coverage Group, the new headquarters in New York City, they will be tasked with onboarding and guiding interested parties through their expansion into the cryptocurrency markets.
The official blog post reads:
We understand that institutions need more than great products, they need great service too. Our Institutional Coverage group is focused exclusively on serving the needs of institutional clients by providing sales, sales trading, research, market operations, and client services support. This group, headquartered in our New York City office, brings years of diverse and relevant institutional experience from firms such as the New York Stock Exchange, Morgan Stanley, and the SEC and CFTC.”
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