Coinbase has launched a new OTC trading desk for institutional clients. The launch during the bear phase says a lot about how big players feel about the ongoing slump.
Coinbase is nowadays busy in increasing its revenue from institutional clients. That’s why it has continuously been launching one after another product based on the needs of institutional crypto traders and investors. It was only a while ago that it had launched a Coinbase Custody, a crypto custodian service for institutions, and now it has launched a new Over-the-Counter (OTC) cryptocurrency trading desk for institutional clients.
The new desk has not been announced officially, but it was spotted live by live streaming site Cheddar. When contacted for comments about the development, Coinbase Head of Sales Christine Sandler said that the move was a must for them. She said:
“We launched our OTC business as a complement to our exchange business because we found a lot of institutions were using OTC as an on-ramp for crypto trading.”
She added that the new desk will allow company’s institutional clients to leverage their crypto exchange and other services launched recently. There’s also a possibility of company combining its OTC service with the exchange business.
In the recent days a number of other cryptocurrency businesses have also started OTC trading desks. For example, Circle, Genesis Trading, Kenetic Capital and many other companies have launched OTC trading desks. When Bitcoin Magazine asked Ms. Sandler what will make Coinbase’s offering unique, she said:
“Circle and a number of others have complementary products, but they also trade on a proprietary basis, so they are the counterparty to each transaction, while we, in fact, are matching client orders.”
Also it’s worth noting that this OTC trading desk has been opened at a time when market is experiencing one of its worst bear markets. When asked about the timing of launch Ms. Sandler said:
“From our crypto first clients, we’re hearing that nothing has changed with respect to technology, and they’re still absolutely committed to crypto … to the technology. I think that there’s one small silver lining to this volatility … [it’s] that crypto’s been front and center of the mainstream financial media for the last few weeks. I think that has driven … forced a lot of institutions to think, really, is this an opportunistic investment point for crypto at this point.”
Coinbase has recently also shown its intentions of becoming an SEC-registered broker-dealer. In short, those who’re dead serious about crypto are not giving a damn to the bear market. They still believe that cryptocurrencies are going to stay, and there’re good reasons to believe that. Let’s see what other services/products are launched next by Coinbase.