Coinbase just made a big move in the crypto space. You might know Coinbase as the most popular cryptocurrency exchange, with 13.3 million users as of November 2017.
For a while Coinbase was the most accessible way to purchase cryptocurrency, and arguably, it still is.
Coinbase has recently valued itself at a whopping 8 billion dollars. They are making hand-over-fist in fees, as they take 1-4% of each transaction.
The Coinbase of Tomorrow
Coinbase made a huge announcement, and it has to do with the future of their business model. Not only will they provide the exchange services that they do currently, but they are opening up a wide variety of options specifically aimed to attract institutional investment in a package called Coinbase Suite.
Breaking down the announcement it’s probably fair to say that Coinbase is expanding from offering one service, to four. Again these three new services are aimed at enterprise, and specifically investors. Keep on reading for the three additions falling under the Coinbase Suite.
The first new additions are pretty straightforward. Coinbase Prime is designed to provide investors and day traders with all the tools that they would find in any of the traditional markets. I’m talking about a full trading interface, but also lending and margin financing, OTC trading, and even algorithmic trading. All the analytical tools that traders have access to in other markets are all coming as Coinbase Prime.
Of course, Coinbase doesn’t expect these large institutions to integrate seamlessly. Things of this magnitude, well, are hard to actually implement. That is why the Coinbase Institutional Coverage Group is providing support for all of the new services they are launching. This includes sales support, research, market operations, and any other general client services.
They hope to attract investors with a lot of money, obviously. But you need superb customer service to keep that institutional money. Coinbase offering institutional coverage gives these investors piece of mind that someone will be there to help incorporate their products and services.
The last part of the Coinbase expansion might be the most important. Coinbase Custody is partnering with SEC compliant broker-dealers, a huge step towards legitimizing the cryptocurrency industry.
While it doesn’t necessarily mean that Coinbase is SEC approved, it does mean that the level of compliance required from Coinbase is at the level that the SEC requires. So when cryptocurrency does cross that threshold, Coinbase will be ready.
Business on the Blockchain is a new series aimed at keeping you up to date on all of the big business moves towards blockchain technology. More and more businesses are exploring cryptocurrencies and blockchain, and we’re here to help you understand how some of these businesses are making this transition. It’s an exciting time for blockchain adoption, check out which businesses are jumping onto the wave!
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