Coinbase, a major U.S. exchange and wallet provider has come up with four new products for institutional investors — Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group and Coinbase Prime. These products are aimed to address security and regulatory compliance issues preventing these group of investors from getting into the cryptocurrency game.
Coinbase vice president and general manager, Adam White, told “CNBC“:
“We think this can unlock $10 billion of institutional investor money sitting on the sideline. We’re seeing a rapid increase in attention awareness and adoption in the cryptocurrency market.”
Coinbase Custody is geared to address security, the primary concern of institutional investors. It will be partnering with a third party auditor to secure clients’ funds through rigorous financial controls such as multisignatory protection, audit trails, and withdrawal limits.
Coinbase Prime will be a special trading platform for institutional clients and Coinbase Markets will be a Chicago-run electronic marketplace that will provide the liquidity for investors.
Having already traded more than $150B on its trading platform, Coinbase is currently servicing more than 20 million customers, CNBC reported. VC funding from Andreessen Horowitz, Union Square Ventures, and the New York Stock Exchange amounted to $225 million, and according to Recode, Coinbase has reported a revenue of $1B in 2017.