Yesterday, Coinbase announced four new major products with the aim to facilitate and encourage institutional investments.
First, the San Francisco-based digital currency exchange has partnered with an SEC-regulated broker-dealer to create Coinbase Custody, which according to the company is the most secure cryptocurrency storage solution up to now. The company explains in an official blogpost:
“Coinbase Custody is proud to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer.”
Some of the initial Coinbase Custody’s partners are MetaStable, Scalar Capital, WaldenBridge Capital, Autonomous Partners, Polychain Capital and more.
Secondly, Coinbase announced a new electronic marketplace, known as Coinbase Markets. The company explains:
“Coinbase Markets provides a centralized pool of liquidity for all Coinbase products. Over the course of the year, Coinbase Markets will introduce new features like 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.”
Furthermore, Coinbase is opening a new office in Chicago, attempting to expand its operations across the United States. Notes Coinbase:
“We are thrilled to open an office in Chicago and have access to a large talent pool of engineers with deep exchange infrastructure experience. This office will serve as the home for our Coinbase Markets team and enable us to continue offering the most performant and reliable cryptocurrency exchange. Chicago is an ideal location for our newest Coinbase office and we hope our investment will continue to position the city as a growing hub for technological innovation.”
Thirdly, the company announced its plans to begin Coinbase Prime, a new platform built especially to provide tools and services to institutional investors. This platform is certain that will accelerate cryptocurrency adoption worldwide helping institutions to enter the new and exciting market. The company wrote:
“This product will fill a missing piece of critical infrastructure needed for institutions. Over the course of the year, we intend to offer lending and margin financing products to qualified clients, high touch and low touch execution services like over-the-counter (OTC) trading and algorithmic orders, and new market data and research products. We will also introduce platform improvements like multi-user permissions and whitelisted withdrawal addresses.”
Finally, Coinbase announced The Coinbase Institutional Coverage Group with the aim to “serving the needs of institutional clients by providing sales, sales trading, research, market operations, and client services support.”
The headquarters of the Group is in New York City and attracts top talent directly from the New York Stock Exchange, Morgan Stanley, the SEC, and CFTC. Coinbase wrote:
“By guiding clients through the onboarding process and advising on execution strategies, this team will deliver a best-in-class client experience. We are proud to offer personalized white-glove service and help institutional investors navigate the increasingly complex world of cryptocurrency investing.”