It is something that a lot of traders and investors have been calling out for – the introduction of institutional money to the cryptocurrency marketplace, and Coinbase looks determined to drag at least some of this money in.
They have launched the Coinbase Custody platform, which is designed specifically to offer cold storage to investors that are willing to invest a minimum of $10m. The exchange has said that they hope this will bring in $10bn more to their own products which, in turn, will mean the start of an influx of money to the market as a whole.
Other Institutional Initiatives
This isn’t the first move that Coinbase has made in this direction, either. In June, CryptoIsComing reported on the launch of the Cryptocurrency Index Fund which was also aimed at those with a $10m spend and would hold investments in each of the currencies listed on the Coinbase site.
In June, they also announced that they had acquired three companies and had applied to become a registered broker dealer, taking them one step closer to being able to trade ICOs.
Rags To Riches
Coinbase may have made its name by offering easy access to cryptocurrency for its standard members, but it has recently been putting a lot of effort into trying to attract investors with deeper pockets.
Individual, professional investors can use the Pro platform, which is a rebranded version of GDAX, while institutions can enjoy the advanced features of Prime or the white glove treatment of the Coinbase Institutional Coverage Group, who provide extensive advice and guidance for the big money investors.
While the success of Coinbase Custody is not yet known, there is no disputing the reach that they have. Such is their reputation that rumours have been circulating that beleaguered social network, Facebook, is looking to buy Coinbase.
The head of Facebook’s new blockchain exploratory group, David Marcus, sits on Coinbase’s board. It remains unclear whether Coinbase would welcome such an acquisition at this time, although Facebook has been known to pay over the market value for its purchases.
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