Top U.S. cryptocurrency exchange Coinbase is focusing on a group that has been especially cautious to dive into the volatile market: Institutional investors.
reportedly looking to open a cryptocurrency trading desk, and White said others will be quick to follow.
“Very few want to be first but everyone wants to be second,” he said. “There will be fast followers.”
The six-year old company has traded $150 billion in assets on its platform, and has more than 20 million customers, Coinbase said. Last year, it brought in a reported $1 billion in revenue, according to Recode, and has drawn in more than $225 million in funding from the world’s top investors including Andreessen Horowitz, Union Square Ventures and the New York Stock Exchange. Recode also reported that the company valued itself at about $8 billion when it made an offer in its recent acquisition for Earn.com.
Coinbase is best-known for its trading platform which offers bitcoin, bitcoin cash, ethereum and litecoin. But it’s now offering a separate platform exclusively for institutional investors called Coinbase Prime.
“The feedback we heard from institutional investors was ‘your infrastructure doesn’t meet our expectations'”White said. “We heard that loud and clear.”
The new platform will have a seperate interface than Coinbase’s GDAX exchange but all investors will have access to the same pool of liquidity.
Coinbase Markets, is the company’s new electronic marketplace, which will be run out of an office opening in Chicago. It provides a centralized pool of liquidity for all of the company’s products.
The fourth product, Coinbase Institutional Coverage Group, was designed for “white glove” customer service that institutions like banks are used to. The group will be run out of the New York City office, and will help on-board new clients, and sell the service to additional investors looking to get into crypto.
“This is our public demonstration we are absolutely here to serve institutions investing heavily to do that,” White said.
Published at Tue, 15 May 2018 12:01:39 +0000