Coinbase Prime Brokerage Business Already Sees $20 Billion Hedge Fund Join Service
Coinbase Starts A New Project To Attract Crypto Investors
Coinbase progresses with its plans to attract new investors to the crypto market, and to do so, it launches Coinbase Prime broker business. The projects like these, while common in traditional businesses, have been absent from the crypto world until now.
Coinbase Prime To Become An Investor Magnet
In order to bring more institutional investors to the crypto market, an entire team of ex-Wall Street executives was created, and is now working on bringing more money to the crypto space through a prime broker business.
The whole project is Coinbase's idea, and the exchange aims to expand its institutional investors‘ scope as well. According to them, the lack of prime brokers is the biggest disadvantage that the crypto world has, and things may have gone a lot differently if someone has introduced this aspect of traditional businesses to the crypto sphere earlier.
This is a concept that Wall Street has developed to perfection a long time ago, and their brokers are acting as middlemen between the investors and trading venues or hedge fund managers. The crypto market did not have such entities who would act as middlemen due to high entry barriers.
This is what Coinbase is hoping to change by launching a new broker business called Coinbase Prime. According to its website, Coinbase Prime will work as a trading platform for institutional clients. The platform will help guide the investors through the process of joining the crypto world, and will also offer advice on various business strategies in this sphere of business.
Finally, the platform promises to deliver the best support to their clients, as well as the top-notch services for their every need. Some of those services will include the same ones that are being offered by regular prime brokers, while others will be specific to the crypto market.
New Projects Attract Multi-Billion Hedge Funds
Additionally, Coinbase is also getting ready to introduce marginal finance, which is to come by the end of 2018. This is a concept that is going to allow investors to borrow, so that they could trade, or interact with the market in some other way.
Coinbase's statement during the launch of the project says that they are preparing a lot of new features and services for the future, as well as many improvements to the platform.
Their move has seemingly received a lot of attention, and the company has already had around $20 billion hedge fund from the prime business alone. However, they want more, and are actively working on getting it.
Some believe that this is a move that more traditional institutional investors have been waiting for. Being accustomed to brokers in the traditional market, they were hesitating to join the crypto market due to the lack of a familiar middleman. The exchange has seen this as the biggest obstacle to the next step in crypto development, and so they decided to be the first one to introduce this concept to the growing crypto world.
With that in mind, the institutional investors will have no more excuses to keep them from joining the crypto world. Many believe that this is an extremely positive step for everyone involved, and all that remains now is to wait and see who will show up in Coinbase Prime's new office.