Cryptocurrency is going legit in a big way.
Leading U.S.-based cryptocurrency exchange Coinbase is going after institutional investors with four brand-new major products, all of which cater to the needs of professionals and big universities, preparing it easier for them to trade cryptocurrencies such as Bitcoin, Ethereum and Ripple.
The new produces address many of the things that big investors such as hedge funds appearance when trying to enter the cryptocurrency busines, provisioning liquidity, safe storage of resources, aspect help and advanced concoctions such as OTC( over-the-counter) and perimeter trading.
If institutional investors make the enticement — and approximate by proclamations from sketching monstrous such as Goldman Sachs, they will — Coinbase’s brand-new tools will clear the footpath for an even larger spate of coin into cryptocurrencies.
Coinbase Custody, launched in partnership with “an SEC-regulated broker-dealer, ” stipulates safe storage of cryptoassets, working together with third-party reviewing. Coinbase claims it’ll draw on its experience of accumulating more than $20 billion in cryptocurrency to make this the “most secure crypto storage answer available.”
Coinbase Prime is a platform with all the bells and whistles institutional investors are used to, and by the end of its first year it should have advanced tools such as boundary trading, algorithmic seeks and multi-user dispensations. Observe that individual investors should use Coinbase’s trading platform GDAX; Prime is for institutions and professionals only.
Coinbase Markets is a centralized liquidity puddle for all Coinbase makes, which, besides Coinbase’s digital pouch and exchange, include transactions platform GDAX and now Prime. This concoction will be headquartered in Coinbase’s new part in Chicago.
Coinbase am of the view that more than 100 hedge funds announced plans to trade/ invest in cryptocurrency in the last few months alone.
Finally, the Coinbase Institutional Coverage Group will work from Coinbase’s New York City office to provide support to buyers including research and busines operations.
This is a major upgrade to Coinbase’s product lineup, which has so far been mostly oriented towards individual investors. “There is clear necessitate from institutional our customers and financial services professionals for more specific solutions with regard to cryptocurrencies that address their intelligent motivations, ” Adam White, Vice President and General Manager of Coinbase Institutional, said in a statement. Coinbase claims that more than 100 hedge funds announced plans to trade/ invest in cryptocurrency in the last few months alone.
Coinbase was apparently adding more than 100,000 customers per era in late 2017, when the cryptocurrency hysterium — and Bitcoin price levels — was get off the charts. The company reportedly had more than $ 1 billion in income in 2017, and quality itself at $ 8 billion in April 2018.
Disclosure: The author of this verse owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH.