US Coinbase Eyes Big Investors with New Crypto Trading Services

The cryptocurrency trading platform says it aims to tap а USD 10 billion segment

by Marin Marinov
15 May • 2.5 min
In News

One of the largest US cryptocurrency exchanges, Coinbase, seeks to fortify its leading position in the competitive US digital currency market revealing a line of new services aimed at institutional investors, the San-Francisco based company said on Tuesday.

“We think this can unlock USD 10 billion of institutional investor money sitting on the sideline,” Adam White, vice president and general manager at Coinbase said. “We are seeing a rapid increase in attention awareness and adoption in the cryptocurrency market,” White explained in a blog post.

 

Four New Services

The new Coinbase services named Custody, Prime, Markets and Institutional Coverage Group, will be available in the coming months. The Prime is planned to be a trading platform for institutional investors only. It should be separated from its popular GDAX trading platform but will base its liquidity on the established platform’s pool:

“The feedback we heard from institutional investors was 'Your infrastructure doesn't meet our expectations'…[and] ”We heard that loud and clear," Adam White explained.

The second service, Coinbase Custody, is aimed to bring more security as hacks are one of the major problems in cryptocurrency exchanges. The institutional investors want a regulated digital currency custodian, multi-user accounts with separate permissions and high levels of cyber and physical security, the US company explained. Coinbase Custody plans to offer crypto storage with a licensed broker-dealer.



new-services

 

Coinbase Markets will be operated from the company’s office in Chicago and is aimed at providing a centralized pool of liquidity for all Coinbase products. The Institutional Coverage Group will be based in New York and should provide “sales, sales trading, research, market operations, and client services support”, Coinbase said.

Coinbase is a licensed company within the New York Department of Financial Services (DFS). The exchange offers Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC) and Ethereum (ETH) for intra-virtual currency trading and for fiat money (USD, EUR and GBP).

Coinbase claims to have around USD 20 billion in assets stored and more than 20 million users since its establishment in 2012. It reported USD 1 billion in revenue last year and attracted USD 225 million from investors, including the venture capital fund of Netscape founder Andreessen Horowitz.

In March, Coinbase announced possible new listings but the decision is on hold pending more regulatory clarity. Meanwhile, one of its main competitors, Winklevoss brothers’ Gemini, was granted permission to list privacy-oriented Zcash (ZEC) cryptocurrency.