Coinbase, a cryptocurrency exchange based in San Francisco, has launched a new suite of services aimed at institutional level market participants.
With one of these services, Coinbase Custody, the firm says that it has leveraged its experience of safely storing more than $20 billion of cryptocurrency to create the most secure crypto storage solution available.
“In partnership with an SEC-regulated broker-dealer, 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,” says Coinbase in announcing the news.
The firm also plans to improve its electronic marketplace, Coinbase Markets, by opening a new engineering office in Chicago. The plan is to then introduce new features like low latency performance, on-premise data centre colocation services, institutional connectivity and access, and settlement and clearing services to this platform over the course of the next year. These additions, according to Coinbase, will allow for a more efficient price discovery process to occur, creating tighter markets, deeper liquidity, and increased certainty of execution.
“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,” says Coinbase.
The firm is also launching Coinbase Prime, a new platform that, over the course of the next year, will offer lending and margin financing products to qualified clients, high touch and low touch execution services like OTC trading and algorithmic orders, and new market data and research products. Coinbase plans to also introduce platform improvements like multi-user permissions and whitelisted withdrawal addresses.
“We believe Coinbase Prime will accelerate adoption of cryptocurrency worldwide and we are excited to help institutions everywhere participate in this emerging asset class,” the firm adds.
Finally, Coinbase has launched an Institutional Coverage Group that is focused exclusively on serving the needs of institutional clients by providing sales, sales trading, research, market operations and client services support.
This group, headquartered in the firm’s New York City office, will be responsible for guiding clients through the onboarding process and advising on execution strategies.
“We are proud to offer personalised, white-glove service and help institutional investors navigate the increasingly complex world of cryptocurrency investing. As institutions continue to enter the cryptocurrency market, we are committed to building the products and services that uniquely meet their needs. We believe our suite of products and dedicated Institutional Coverage Group will accelerate the rate of institutional adoption and create a more mature and diverse market,” says Coinbase.