It is certainly something to stand up and take note when a managing director of an esteemed company in a traditional sector joins an up and coming cryptocurrency-based company.
This is exactly what has happened with Jeff Horowitz, the former chief compliance officer and managing director of a BNY Mellon subsidiary called Pershing LLC as he has gotten on board with Coinbase as their new chief compliance officer.
Now that he has started to settle into this new role, Horowitz is looking at what can be achieved going forward. To date in his career, Horowitz focused most of his efforts on the management of brokerage custody, as well as on settlement and clearing solutions. With Coinbase pushing into the enterprise cryptocurrency sector, he is the right fit for the job it appears.
Coinbase is looking to expand their current market position as a fiat currency to cryptocurrency exchange into their features related to the cryptocurrency space. The creation recently of Coinbase Custody looks at helping traditional hedge funds to easily invest in cryptocurrency and to help diversify their current holdings.
July saw Coinbase acquire a broker-dealer with the necessary licenses. With this latest push, as well as hiring Horowitz showcases just how much Coinbase is looking to focus on attracting institutional investors to the cryptocurrency space. It is an obvious move in terms of its concept, but in reality, it is, of course, a lot more difficult.
Traditionally, the likes of hedge funds are risk averse and they would not look to get involved in any significant way in such a volatile sector such as cryptocurrency.
There have not been many options for them to get involved in any significant manner anyway until recent times, as the only way in which they could have would have been through buying the actual cryptocurrencies. However, now there are cryptocurrency futures, as well as the likes of ETFs and now Coinbase Custody.