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Coinbase Establish Five Core Principles for Institutional Products

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Coinbase have released their five key principles related to their new range of institutional products. Coinbase Custody, which was launched in May this year (2018), is geared towards institutional cryptocurrency adoption, based on a minimum of $10 million held in deposits per account. Now, to establish a clear path to success, Coinbase have announced these principles, along with action points, via a Medium post by Vice President & General Manager Adam White.

The Principles

Principle One: Operate a fair and orderly market

In this, Coinbase mention ongoing monitoring in terms of maintaining a healthy, liquid market, but also monitoring in terms of detecting and reducing fraud.

Principle Two: Protect our customers with institutional-grade infrastructure and processes

Coinbase are clearly aiming at quelling any doubts that institutions might have over the storage of large amounts of funds in cryptocurrency. Their “institutional-grade tools” will be federally compliant, as well as forward-thinking and constantly developing. The blog says “This includes geographically distributed storage vaults, guaranteed accessibility to funds and insurance of stored assets”.

Principle Three: Enforce transparent market rules and governance

This principle once more mentions ongoing monitoring of “deceptive trading practices”, restating the overall theme of this blog post, which is certainly security-focused. The other key takeaway from this principle though, is that Coinbase will look to make all trading rules, limits and incentives clear, transparent and easy to follow for newer entries into the market.

Principle Four: Provide fair access to all market participants

Simply put, this principle states that all clients will have the same information and data available to them, to ensure that there is no market bias.

Principle Five: Publicly disclose listing practices and market rules

Once again, this is focused on transparency and making data and governance processes equally available to all.

The overall point of this mission statement then, is that Coinbase are looking to establish trust with institutional investors, by showing that they will be compliant, vigilant and transparent at all times – perhaps the main aspects of the crypto world that  newbies are concerned with. All that remains to be seen is whether they are able to deliver the level of service that companies are used to in the “traditional” financial world.

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