If institutional investors take the bait - and judging by announcements from banking giants such as Goldman Sachs, they will - Coinbase's new tools will clear the path for an even larger outpouring of money into cryptocurrencies. Finally, Coinbase is announcing an institutional coverage group headquartered in New York City to provide the highest level of service to clients.
Coinbase will open a new office in Chicago with a talent pool of best engineering minds.
"We have leveraged our experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available", the firm said today. Coinbase Markets will provide a centralized pool of liquidity for all Coinbase products as well as deliver a range of new features including latency performance, institutional connectivity and access, on-premise datacenter colocation services, as well as settlement and clearing services.
Coinbase Custody focuses on addressing the topmost concern that institutional investors have regarding cryptos - security.
"Coinbase Prime will accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class", the company says.
Initial clients include Boost VC, Meta Stable, Multicoin Capital, Polychain Capital, Autonomous Partners, Scalar Capital, 1confirmation and Walden Bridge Capital.
In a press release announcing the news, the company also confirmed the addition of a new Chicago office tasked with enhancing the development of the Coinbase Markets product offering.
Coinbase Prime is a new set of services which Coinbase says will "fill a missing piece of critical infrastructure needed for institutions" that wish to add cryptocurrencies to the roster.
Coinbase Prime is a platform with all the bells and whistles institutional investors are used to, and by the end of the year it should have advanced tools such as margin trading, algorithmic orders and multi-user permissions.
By guiding clients through the onboarding process and advising on execution strategies, the Coinbase Institutional Coverage Group will offer personalized white-glove service and help institutional investors navigate the increasingly complex world of crypto asset investing. Note that individual investors should use Coinbase's trading platform GDAX; Prime is for institutions and professionals only.
Another new product will be Coinbase Prime, which was created to offer the tools that the institutional investors need the most when trading and fill the gap that sometimes prevents these institutions from investing in crypto.
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