Coinbase Launches ‘Prime’ Service to Lure Big Institutional Investors
Coinbase Inc. one of the largest crypto exchange in the U.S. is developing several tools to lure institutional investors onto its platform.
They include custodial services where investors can store large amounts of digital currencies as well as enhanced trading capabilities, such as risk management and marging trading, which allows customers to use borrowed money.
The San Francisco-based startup said it is building a new matching engine that will allow firms to match buy and sell orders for cryptocurrencies like bitcoin in fractions of seconds and is building up a team that will cater exclusively to institutional clients.
In addition to the new Prime service, which offers sophisticated trading and data tools to institutional investors, the company also announced “Coinbase Markets,” which will draw on its new Chicago office to create a souped-version of its existing exchange service.
Coinbase will launch the following products for investors: Coinbase Custody, Coinbase Markets, the Coinbase Institutional Coverage Group and Coinbase Prime.
But Coinbase said the move will lead to better results for all traders on its exchange, including retail investors, who currently trade the bulk of cryptocurrency volumes.
“By allowing institutions and individuals to trade on the same platform we get tighter spreads, deeper liquidity and better price discovery,” Adam White, general manager at Coinbase’s GDAX exchange, said in an interview.
Commenting their new offerings, Adam White, Vice President and General Manager of Coinbase Institutional explained: “There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs”.
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