Adoption, Crypto Exchanges

Coinbase Catalyzes Institutional Adoption With New Product Suite

Coinbase Catalyzes Institutional Adoption With New Product Suite

San Francisco-based Coinbase has announced the launch of a range of new products designed to attract institutional organizations to the rapidly evolving cryptocurrency and blockchain ecosystem. The formal launch of Coinbase Custody alongside several other offerings has placed institutional financial organizations directly in the sights of the exchange platform as more sophisticated institutional participants enter the crypto environment.

The announcement, published on May 15th, heralds the launch of Coinbase Custody, a new cryptocurrency custodian that will operate in partnership with the SEC to create the “ most secure crypto storage solution available.”

The new storage solution will leverage Coinbase’s experience with storing more than $20 billion of cryptocurrency and was first announced by Coinbase co-founder and CEO Brian Armstrong in November 2017.

Armstrong highlighted the importance of secure storage as sovereign wealth funds, traditional hedge funds, and other institutional financial investors enter the market:

“When we speak with these institutions, they tell us that the number one thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely.”

New Offerings Emerge from Coinbase Chicago Office

In addition to the new Coinbase Custody solution, the newly-created Coinbase Chicago office has will be launching Coinbase Markets, a new solution that is set to enhance what is already the deepest pool of liquidity in the crypto market. Coinbase Markets will provide a centralized pool of liquidity for all Coinbase products as well as deliver a range of new features including latency performance, institutional connectivity and access, on-premise datacenter colocation services, as well as settlement and clearing services.

Another unique product launched alongside Coinbase Markets and Coinbase Custody is the new Coinbase Prime solution. Specifically designed to “ provide a suite of tools and services that institutional investors rely on when trading cryptocurrency,” Coinbase Prime will offer both lending and margin financing products, OTC trading, algorithmic trading, market data, and research products to qualified clients.

Adam White, the Vice President and General Manager of Coinbase Institutional, commented on the launch of the new product suite:

“There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs. Through new products like Coinbase Prime and Coinbase Custody, we’re building the necessary capability for institutions that allows cryptocurrencies to be traded and stored in a compliant, trusted and efficient manner.”

Lastly, the launch of the new Coinbase Institutional Coverage Group will see the platform launch a new service that will deliver sales trading, research, market operations, and client services support to institutional clients.

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.

Cover Photo by Chris Leipelt on Unsplash

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Sam Town

Sam Town

Samuel is a freelance journalist, digital nomad, and crypto enthusiast based out of Bangkok, Thailand. As an avid observer of the rapidly evolving blockchain ecosystem he specializes in the FinTech sector, and when not writing explores the technological landscape of Southeast Asia.

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