Coinbase, US largest digital currency wallet provider, and exchange platform have made it public that they are unveiling a group of new products targeting institutional investors, according to an official blog post on May 15.
The four products include- Coinbase Markets, Coinbase Custody, Coinbase Prime, and The Coinbase institutional Coverage Group. all concentrate on relieving significant concerns that are believed to have supposedly barred institutional investors from investing in cryptocurrencies like regulatory compliance and security.
“These products can reveal the $10 billion of institutional investor money that has not been well utilized. We anticipate a sudden increase in attention awareness and adoption in the digital currency market,” Said Adam White, the vice president of general manager of Coinbase during an interview with CNBC.
The product Coinbase Custody, the official Coinbase blog post, was launched last year and focuses on the concerns of institutional investors and majorly on security. The company notes that the product will secure funds for its customers through financial measures like audit trails, signatory protection, and withdrawal limits.
Although the company is alleged to store over $20 bln worth of client’s digital currency, according to reports from CNBC, Coinbase Custody will be created in partnership with a third party auditor which is believed to be an SEC-compliant independent broker-dealer.
While on the other hand, Coinbase Markets will be a Chicago-run electronic marketplace that offers a centralized pool of liquidity for all investors and strives to provide settlement and clearing services in the future, Coinbase made the announcement yesterday. Coinbase Prime, the other product, will be a distinct trading platform for institutional clients.
Reports from CNBC indicate that Coinbase has over 20 mln clients and has traded $150 bln in digital assets on its digital currency platform. Figures from Recode shows that the crypto platform reported over $1 bln in revenue with $225 million of the money in VC funding from investors like Union Square Ventures, Andreessen Horowitz, and the New York Stock exchange. The exchange platform valued itself at approximately $8 in an acquisition deal during this spring.
ICE, New York Stock Exchange owner has publicized on their plans to settle crypto swap contracts using BTC proposing that it has created an SEC-compliant Custody solution for institutional holders. The announcement by ICE comes a few days Goldman Sachs; an investment banking giant confirmed that it could open a digital currency trading desk in few weeks’ time.
Following the elimination of custody and regulatory obstacles, most investors have forecasted that a “mature” crypto market will create significant institutional investments into place.