Coinbase Launches OTC Trading Desk for Institutional Investors

Coinbase Launches OTC Trading Desk for Institutional Investors

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November 29, 2018 by Sandra Onyeiwu
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Major U.S. digital asset platform Coinbase has launched an over-the-counter (OTC) trading desk dedicated to institutional investors. Coinbase is now the latest cryptocurrency business to launch an OTC trading desk, following companies such as the Goldman Sachs’ backed Circle and Cumberland. Coinbase shared the news of the OTC desk through an interview with Cheddar and
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Major U.S. digital asset platform Coinbase has launched an over-the-counter (OTC) trading desk dedicated to institutional investors. Coinbase is now the latest cryptocurrency business to launch an OTC trading desk, following companies such as the Goldman Sachs’ backed Circle and Cumberland.

Coinbase shared the news of the OTC desk through an interview with Cheddar and Coinbase Head of Sales, Christine Sandle, who said that the firm launched the OTC desk as a complement to its exchange business because institutions are using OTC as an “on-ramp for crypto trading”

The OTC desk will eventually be integrated with Coinbase’s Custody service to securely store the digital assets for the clients.

According to Christine Sandler,

“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. We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”

In an OTC trade there is no third-party involved; trades take place directly between the investor and the seller. So in this case, Coinbase will most likely mediate the trades between its clients.

Coinbase first revealed its plan to offer an OTC trading desk in June, when Asiff Hirji, its chief operating officer and president said that acquiring regulatory licenses would help the firm take a “path to offer future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and new market data products.”

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