US cryptocurrency wallet and exchange operator Coinbase announced today that they were launching a custodian service aimed at accelerating the adoption of cryptocurrencies by institutions.
Coinbase Custody, a service that was announced earlier this year, comes a part of a suite of institutional products released by US firm. Coinbase said that it had leveraged its experience “safely storing more than $20 billion of cryptocurrency” to create the product, which it described as “the most secure crypto storage solution available”. The company also said that it was working with “a SEC- regulated broker-dealer”.
Other products in the suite include Coinbase Markets, which provides “a centralised pool of liquidity for all Coinbase products” and Coinbase Prime, a new platform providing a suite of tools and services used by institutional investors for cryptocurrency trading. Coinbase said that it would continue to develop Markets by opening a new office in Chicago and adding a number of new features over the course of the year. With regards to Coinbase Prime, the company said it believed that the platform “will accelerate adoption of cryptocurrency worldwide and we are excited to help institutions everywhere participate in this emerging asset class”.
The company also announced that it was launching an institutional coverage group, which would focus on serving the needs of institutional clients “by providing sales, sales trading, research, market operations, and client services support”. The group, which will be headquartered in Coinbase’s New York office “brings years of diverse and relevant institutional experience from firms such as the New York Stock Exchange, Morgan Stanley, and the SEC and CFTC”.
With the launch of the new product suite Coinbase aims to capitalise on the growing number of institutional investors that are tapping in the cryptocurrency market. The company noted that “in the past few months over 100 hedge funds were created that exclusively invest in and trade cryptocurrency,” while some of the world’s largest financial institutions “have also recently announced their plans to begin trading cryptocurrency”.