After Gemini (owned by Winklevoss twins), cryptocurrency exchange Coinbase has announced that it will start block trading.
Apart from that, the exchange has also stated that it will open offices in Chicago in a bid to attract more institutional clients.
According to a report in Business Standard, the firm is serious about starting block trading which shows that the exchange is serious about its competition with its rival Gemini and other over-the-counter trading firms for business from institutional and high-net-worth clients.
Larry Tabb, the founder of consulting firm Tabb Group, in an email to Business Insider said, “Coinbase is also hiring a head of market structure to explore new order-types, liquidity incentive programs, and other market safeguards to beef up the exchange. That could help lure in trading firms, and add more liquidity onto the platform.”
He added, “Those are the things they need to be thinking about. How do we get Virtu, Citadel, DRW, Susquehanna to make markets. It’s going to be a combination of incentives, order types, connectivity, co-location, and pricing.”
One person familiar with developments told Business Insider that, the Coinbase’s office in Chicago may be up and running by the third quarter of 2018. Coinbase already has some staff based in the city including engineers Kyle Kavanagh and David Caseria. The firm right now has temporary office space for staff in Chicago.
However, the exchange is yet to make any official statement on the matter.