Four new Coinbase products are being launched by the popular exchange with the hopes that they will attract institutional investors into the cryptocurrency market.
The four new Coinbase products are designed to solve the biggest issues that institutional investors cite as keeping them from fully entering cryptocurrency, reports CNBC. The products are Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group, and Coinbase Prime.
Four New Coinbase Products:
The Coinbase Custody product is looking to solve the issue of security. In the institutional universe, the fiat currency that is stored in banks is insured. However, in the world of cryptocurrency, there is no such guarantee. Lost or stolen crypto funds will likely never be recovered, and this puts institutional investors on edge.
Coinbase Custody will act as an SEC-regulated cryptocurrency storage space. Already, Coinbase stores over $20 billion worth of cryptocurrency for its customers – now, Coinbase Custody will be the specific product in charge of this, partnering with an SEC-regulated broker-dealer.
Coinbase Markets will be Coinbase’s electronic marketplace. It will act as a centralized pool of liquidity for all of Coinbase’s products.
The Coinbase Institutional Coverage Group
High-end institutions, such as banks, expect high-end customer service. That is what The Coinbase Institutional Coverage Group aims to provide. This Coinbase product will be in charge of bringing on new clients.
The Coinbase Institutional Coverage Group will also sell the Coinbase service to additional investors who want to start investing in crypto.
The fourth product is an exclusive platform, offering the same services as its regular trading platform, but it is aimed specifically at institutional investors.
Coinbase Prime will offer the same cryptos as Coinbase itself, Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC). It will be separate from the regular GDAX exchange, but will still provide access to the same pool of liquidity as one would get using Coinbase.
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