Crypto Exchange Coinbase Expands into Institutional Market

The platform will offer digital asset storage, research, and trading.

Cryptocurrency trading platform Coinbase will launch several products to aid institutional investors interested in getting involved in the space.

The crypto-adoption product, Coinbase Custody, will store the digital assets of large financial institutions involved in crypto operations. The exchange will require a $100,000 set-up fee. Users must also have a minimum $10 million in deposits. There will also be a minimum monthly fee, which will be determined based on the assets stored.

To ensure security, the company will use a third party, which is an SEC-regulated custodial broker-dealer, to audit its operations and oversee financial reporting.

Aside from Coinbase Custody, the firm will offer institutions a centralized pool of liquidity (Coinbase Markets) and a platform for trading (Coinbase Prime).

The crypto exchange has also created a group that will further help institutional investors negotiate the raging waters of cryptocurrency. This unit, the Coinbase Institutional Coverage group, will provide sales, sales trading, research, market operations, and client service support. The team consists of veteran financial hands from institutional firms such as the New York Stock Exchange, Morgan Stanley, the SEC, and the CFTC.

“We are proud to offer personalized white-glove service and help institutional investors navigate the increasingly complex world of cryptocurrency investing,” Coinbase said in a statement.

The company’s move comes at a time where investors such as George Soros the Rockefellers, the Rothschilds, and Goldman Sachs have announced their entry into the developing digital asset class. Cryptocurrency analysts, such as Adrian Lai of Hong Kong-based crypto investment firm Orichal Partners, have said that the market will mature throughout 2018, opening the floodgates to institutional money.

Coinbase’s launch partners include 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital, and Walden Bridge Capital.

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