Coinbase announced multiple products today to bring in more high volume institutional investors to the Cryptocurrency market. Coinbase made the official announcement with a Blog post written by Adam White, General Manager at Coinbase. In the past few months, over 100 hedge funds were created that exclusively deal only with Cryptocurrencies. Coinbase aims to serve these and other upcoming similar companies.
First product pitched by Coinbase is their custodial service they launched last year which has third party auditing and financial reporting validation. Coinbase already has acquired a few institutions as launch partners for their custody product.
The second product announced today was Coinbase markets, an online marketplace for liquidity based out of a new office in Chicago. This is the first time the San Francisco based startup has expanded beyond California.
Describing Coinbase Markets in the Blog post, Adam White said:
“Coinbase Markets provides a centralized pool of liquidity for all Coinbase products. Over the course of the year Coinbase Markets will introduce new features like low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services. These additions will allow for a more efficient price discovery process to occur, creating tighter markets, deeper liquidity, and increased certainty of execution.”
The third product announced today was Coinbase Prime which offers additional tools for experienced traders. Some of these tools include lending and margin financing products, algorithmic orders and new market data and research products. Coinbase Prime is available for institutions to sign up right now.
The final product being offered is Coinbase Institutional Coverage Group. This group will be focused on helping and advising their institutional investors. It includes sales, sales trading, research, market operations, and client services support.
Coinbase is optimistic about more institutional investors coming in as the market matures and they want to make sure they have all the right products. Adam White, in his closing statement said:
“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.”