Cryptocurrency exchange Coinbase has launched three new products for institutional investors, as reported by Vice President and General Manager Adam White. The move is a result Coinbase’s goal to strengthen relations with financial institutions taking interest in cryptocurrencies.
The first product, Coinbase Custody, allows institutions to store cryptocurrencies in crypto vaults. Such a feature has previously been tested by Canadian digital bank VersaVault, however, it will begin offering the service in June. In order to ensure that Coinbase complies with the rules set by the U.S. Securities and Exchange Commission (SEC), the exchange is offering the custodial service in partnership with an “an SEC-regulated broker-dealer”. Partners of this initiative include Metastable, Polychain Capital and Walden Bridge Capital, among others.
The second product, Coinbase Markets, will be headquartered in a new office in Chicago, and will offer features such as “low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services” to customers.
The third and final product, Coinbase Prime, provides tools for institutional investors to use in order to trade in different cryptocurrencies. “Over the course of the year we intend to offer lending and margin financing products to qualified clients, high touch and low touch execution services like over-the-counter (OTC) trading and algorithmic orders, and new market data and research products,” wrote White.
Coinbase is also introducing an institutional coverage group, which will offer customer, market, sales and research services to guide exchange users. White added, “We are proud to offer personalized white-glove service and help institutional investors navigate the increasingly complex world of cryptocurrency investing.” Interested users are requested to apply in order to become a part of the diverse group.
White told Bloomberg that they found out that institutions and individuals had different requirements when dealing with cryptocurrencies. He concluded, “We just get one shot, one first impression, and we need to make sure it’s a good one.”