Coinbase Prime is a professional trading platform for institutional clients. Find out everything you need to know about this newly-announced platform today in our review.
What is Coinbase Prime?
Coinbase Prime, announced on May 15, is an institutional-grade trading platform. Yes, Coinbase is targeting institutional clients by offering a suite of professional trading tools.
With Coinbase Prime, institutional investors can access the same diversified liquidity pool that underpins all Coinbase products (including Coinbase and GDAX). At the same time, Coinbase Prime will offer a brand new professional trading platform exclusively for institutional clients.
You can create an institutional account today by signing up at Prime.Coinbase.com. Coinbase will introduce various institutional-grade features – like OTC trading, algorithmic orders, and advanced market data products – over the coming year.
How Does Coinbase Prime Work?
Coinbase aims to offer the following core features and functions to its Prime customers:
Institutional Trading Service: Coinbase Prime will provide access to advanced institutional trading capabilities. These services are not all available at launch, although they will be rolled out over the coming months. tools include margin finance, high-touch execution with OTC block trading, and execution algorithms. Institutional users will be able to access the central limit order book through the Web GUI, FIX API, or third party platforms like TT.
Dedicated Institutional Coverage: Coinbase has built a dedicated team of institutional coverage professionals based in New York City (the main Coinbase offices, meanwhile, are located in San Francisco). That team will walk institutional users through every step of the onboarding process. The team can also advise on execution strategies. Overall, Coinbase aims to deliver “best-in-class client services and support” – just like most platforms catered towards institutional investors.
Trusted, Safe, & Secure: Coinbase promises to be trusted, safe, and secure. Coinbase is one of the best-known and most-reputable names in the cryptocurrency industry. The Coinbase compliance and legal team includes former employees from the CFTC and SEC. Meanwhile, the digital currencies of clients are stored in, according to Coinbase, “proprietary state-of-the-art integrated custody architecture.” Funds in hot wallets, meanwhile, are insured.
Institutional Tools and Products: Over the coming year, Coinbase aims to launch tools like lending and margin financing products to qualified clients, high touch and low touch execution services like over-the-counter (OTC) trading, algorithmic orders, new market data and research products, multi-user permissions, whitelisted withdrawal addresses, and more.
Because of all of these advantages, Coinbase Prime aims to capture a significant portion of the institutional marketplace. Over the past few months, over 100 hedge funds have announced plans to trade in cryptocurrencies and invest in crypto. Just last week, Goldman Sachs revealed plans to enter the crypto space.
However, many of these hedge funds and institutional investors struggle to access a trading platform that meets their needs. Coinbase Prime, like many other institutional-grade trading platforms, aims to meet that need.
Coinbase Announces Custody Platform
At the same time as Coinbase announced their Prime platform, the company confirmed the launch of a Custody service in partnership with SEC-regulated broker-dealer ETC. The custody offering has been rumored since 2017. The partnership is expected to provide extra security for Coinbase customers while complying with a series of regulations required by banks and investment companies.
Coinbase Custody promises to be “the most secure crypto storage solution available”.
Coinbase has already revealed a number of launch partners for Custody, including Autonomous Partners, BoostVC, MetaStable, Multicoin Capital, and Polychain Capital, among others.
Coinbase Introduces Coinbase Markets
Finally, Coinbase also revealed plans to launch Coinbase Markets. Coinbase Markets will expand Coinbase’s existing pool of liquidity – which is likely already the deepest pool of liquidity available in the crypto industry.
With Coinbase Markets, users will be able to access a centralized pool of liquidity across all Coinbase products.
Markets will emphasize low-latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services.
Coinbase, Inc. was founded in June 2012 in San Francisco. Today, the company has 20 million cryptocurrency users and has processed over $150 billion in trading volume.
Coinbase has also raised over $217 million from leading investors.
Coinbase’s core products are its Coinbase payment platform that allows you to buy and sell cryptocurrencies online using credit cards and other conventional payment methods. They also operate GDAX, one of the world’s leading cryptocurrency exchanges for general trading. Now, they seek to expand their offerings with Coinbase Prime.
You can sign up for Coinbase Prime today at Prime.Coinbase.com. The San Francisco-based crypto trading giant aims to introduce institutional-grade features to the platform over the next year. Stay tuned for more information about Coinbase Prime. Or, read the announcement post on the Coinbase blog here.