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Coinbase ready for institutional crypto investors



Digital currency wallet and platform Coinbase is taking steps to ease the transition for institutional investors as they begin their migration to cryptocurrencies.

In a recent blog post, Coinbase general manager Adam White said more than 100 hedge funds investing and trading exclusively in cryptocurrency debuted over the past few months.  Some of the world’s largest financial institutions have announced plans to begin trading cryptocurrencies.

Adam White

Institutional involvement has long been cited as a key step that must occur if cryptocurrency marketplaces are to reach their full potential. But now that it is beginning to happen the industry cannot simply put up its feet and wait for the benefits, Mr. White cautioned.

“At Coinbase, we welcome these developments as they help accelerate the world’s adoption of cryptocurrency by bringing new capital, greater awareness, and additional infrastructure to the space.

“This movement requires institutional-grade products and services, something Coinbase has been developing with leading institutions…”

The menu of products and services begins with Coinbase Custody, a crypto storage solution launched in partnership with an SEC-regulated broker-dealer.

Coinbase Custody launch partners include WaldenBridge Capital, Scalar Capital, Polychain Capital, Multicoin Capital, MetaStable, BoostVC, Autonomous Partners and 1confirmation.

Coinbase Markets builds on Coinbase’s strengths in liquidity and participant pool, Mr. White said. A new engineering office in Chicago is tasked with developing it. Planned features to debut in the next year include low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services.

“These additions will allow for a more efficient price discovery process to occur, creating tighter markets, deeper liquidity and increased certainty of execution,” Mr. White said.

Coinbase Prime arms institutional investors with cryptocurrency trading tools. Over the next year Coinbase plans on offering lending and margin financing products, high and low-touch execution services such as OTC trading and algorithmic ordering, new market data and research products, multi-user permissions and whitelisted withdrawal addresses.

The Coinbase Institutional Coverage Group provides institutional clients with sales, sales trading, research, market operations and client services support, Mr. White said.

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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