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Coinbase launches suite of products for institutional investors

16 May 2018

Four new Coinbase products are being launched by the popular exchange with the hopes that they will attract institutional investors into the cryptocurrency market. Essentially, what Coinbase will be doing via this office is upgrading its systems so that it can become one of the first crypto exchanges that supports high frequency trading (HFT).

But Coinbase wants to satisfy institutions needs not only in high quality products but also in high quality services.

"The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space", the exchange said.

"Through new products like Coinbase Prime and Coinbase Custody, we're building the necessary capability for institutions that allows cryptocurrencies to be traded and stored in a compliant, trusted and efficient manner", added he.

The announcement, published on May 15th, heralds the launch of Coinbase Custody, a new cryptocurrency custodian that will operate in partnership with the SEC to create the " most secure crypto storage solution available".

Our Coinbase Custody launch partners are all leading institutions in the crypto industry, including 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital. It provides extra security measures and complies with a series of regulations required by banks and investment companies.

A second offering announced is Coinbase Markets, an electronic marketplace based out of Coinbase's engineering office in Chicago.

With the launch of the new product suite Coinbase aims to capitalise on the growing number of institutional investors that are tapping in the cryptocurrency market. 'Over the course of the year, Coinbase Markets will introduce new features like low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services.

White believes that the new opening of the office in Chicago will position the company to tap into a larger talent pool of engineers who have "deep exchange infrastructure experience". Paul Bauerschmidt, Product Lead, Coinbase Markets, noted: "As leaders in innovation and technology, Chicago and Coinbase are perfectly suited in working together to help shape the present and future of digital currency".

Coinbase now has more than $200 million in funding from backers such as Andreessen Horowitz and the New York Stock Exchange.

Other products in the suite include Coinbase Markets, which provides "a centralised pool of liquidity for all Coinbase products" and Coinbase Prime, a new platform providing a suite of tools and services used by institutional investors for cryptocurrency trading.

Finally, Coinbase has created a new Institutional Coverage Group that focuses exclusively on supporting institutional clients (as opposed to retail clients). And especially getting as numerous key staff as we need.

Coinbase launches suite of products for institutional investors