Coinbase announced recently that it will launch four new cryptocurrency tools, which will also include a secure way to store crypto assets. This particular feature has been requested for a long time by institutional investors and it could be one reason why the six-year-old virtual currency platform has taken the decision. Also, the arrival of bigger financial participants in the crypto market can possibly have instigated Coinbase to develop these initiatives.
Reports indicate that the best-known cryptocurrency exchange in the U.S. has been aggressively taking steps to ensure that its position as the leading traditional financial institution in the country is not affected in any way especially by its close competitors like Robinhood. Coinbase was the first to bring Bitcoin (BTC) to the masses and now as a part of its process to expand its portfolio, the San Francisco-based company is looking forward to making a foray into Wall Street.
Coinbase Latest Tools To Lure Institutional Clients
The leading digital currency exchange with more than 20 million accounts has developed multiple tools so that the institutional clients are attracted to its platform.
Most of these products will be for institutional investors although some of them will also be made available to all. Its first product is Coinbase Custody that has already started accepting applications from institutions with minimum $10 million as the initial deposit. The custodial services will enable users to store large amounts of digital currencies whereas the enhanced trading capabilities including margin trading and risk management will allow the customers to use borrowed money. This particular feature ties the company with an SEC-regulated broker-dealer for third-party auditing and financial validation.
Coinbase Creates Exclusive Features For Institutional Investors
Coinbase Markets is another feature that will create a centralized liquidity pool for all the products on the platform of Coinbase. It is a sort of electronic marketplace based in the engineering office of the company in Chicago. Coinbase Prime is one service that will be exclusively available to institutional clients and will offer margin financing, lending, and over-the-counter trading. It will give the institutional investors more traditional investment options and control over their crypto accounts.
The fourth product is an Institutional Coverage Group providing services such as sales, research, and market operations. It will have its base in the New York office of Coinbase having a pool of expert employees with an immense experience in the leading stock exchanges.