Coinbase has launched its platform that they, and traders alike, hope will bring in institutional investors. The Coinbase Custody platform is aimed at US and European investors that have a minimum of $10m to invest, and it expands the exchange's efforts to try and bring in more high value investors.
In a blog post first announcing the Custody idea, Coinbase pointed to the formation of more than 100 cryptocurrency hedge funds in just a few months, and they have said that they hope the move will bring in an additional $10bn in new cryptocurrency investment.
Coinbase made its name, and built its reputation as being one of the biggest and most secure exchanges, by offering access to cryptocurrency to anybody. However, they have said that they believe bringing investment from hedge funds and other institutions will help expand the entire cryptocurrency market, as well as Coinbase's own efforts.
Coinbase already offers a number of tools and services that are geared towards the big investor. Coinbase Pro is the rebranded name for GDAX, and the new platform launched in May this year. It features all of the original features of the GDAX platform but offers an improved User Interface (UI) design that includes features like the consolidated wallet view. Fees are lower than you would pay on the consumer Coinbase platform, and you get a lot more tools. Those feed range from 0.1% to 0.3%, according to the amount invested.
Coinbase Pro is geared towards the individual, professional investor. Institutions are able to retain their Pro account, but are being encouraged to sign up with Coinbase Prime. Not only is this a new platform but it will, over the coming months, offer access to additional features like OTC trading and algorithmic orders.
Coinbase Institutional Coverage Group
Another new Coinbase product looking to drag big money in is that of the Institutional Coverage Group. This team will personally deal with the big investors, answering questions and providing advice on everything from how to use the platform to different trading and investment strategies for cryptocurrency investors.
The company also announced that it had acquired a new Chicago Office that would become the centre for their newly formed Coinbase Markets. This team will be responsible for further increasing liquidity within the market, and they will be launching features including low latency performance that will greatly increase the speed of processing times, and settlement and clearing services, with the aim of providing High Frequency Trading to the cryptocurrency market.
Facebook Considering Acquisition?
The exchange has also been in the news recently, amid rumours that Faebook was considering acquiring them. The rumours were ignited when Facebook announced that they would allow some crypto companies to advertise on the social network once again, and because the head of Facebook's exploratory blockchain group also sits on the board of Coinbase. There has been no official word from either Facebook or Coinbase on this potential acquisition, but it would potentially change the face of cryptocurrency if it were to proceed.