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Coinbase Targets Institutions with New Products and Chicago Office

Traders Magazine Online News, May 22, 2018

John D'Antona Jr.

Coinbase announced new product offerings for institutions, designed to better meet their rapidly growing demand to trade and invest in cryptocurrency. In the past few months, over 100 hedge funds announced plans to trade and invest in cryptocurrency, signaling heightened interest from institutional clients and financial services professionals for a source of liquidity and custody for their digital assets.

The company will launch Coinbase Custody, a cryptocurrency custodian in partnership with an SEC-regulated broker-dealer, to a group of initial clients that include the leading institutions in the crypto industry. New product offerings announced today also include Coinbase Prime, a suite of tools and services specifically designed for institutions, and enhancements to Coinbase Markets that will be driven by an engineering team out of the newly opened Chicago office. Finally, Coinbase is announcing an institutional coverage group headquartered in New York City to provide the highest level of service to clients.

"There is clear demand from institutional clients and financial services professionals for more specific solutions with regard to cryptocurrencies that address their sophisticated needs," said Adam White, Vice President and General Manager of Coinbase Institutional. "Through new products like Coinbase Prime and Coinbase Custody, we're building the necessary capability for institutions that allows cryptocurrencies to be traded and stored in a compliant, trusted and efficient manner."

Coinbase Custody to launch in partnership with SEC-regulated broker-dealer
Coinbase has leveraged the company's deep experience safely storing more than $20 billion of cryptocurrency to create Coinbase Custody, the most secure crypto storage solution available. In partnership with an SEC-regulated broker-dealer, Coinbase Custody is proud to offer a service that couples Coinbase's cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer.

Our Coinbase Custody launch partners are all leading institutions in the crypto industry, including 1confirmation, Autonomous Partners, Boost VC, MetaStable, Multicoin Capital, Polychain Capital, Scalar Capital and Walden Bridge Capital.

"We're very familiar with the need for trusted, institutional custody in the crypto space and are excited to partner with Coinbase to help bring this to market," said Kyle Samini, Co-Founder and Managing Partner, Multicoin Capital.

"Coinbase has an impeccable record of secure crypto storage. Polychain is excited to partner with them to bring both security and regulatory clarity to our investors," said Olaf Carlson-Wee, Founder and CEO Polychain Capital.

New Chicago office to execute Coinbase Markets product development
Coinbase is making a major investment in Chicago through a new engineering office that will focus on further developing Coinbase Markets, the premier electronic marketplace for cryptocurrencies. Coinbase already offers the deepest pool of liquidity to the largest number of participants in the cryptocurrency space and will continue developing Coinbase Markets by opening a new engineering office in Chicago.

Coinbase Markets provides a centralized pool of liquidity for all Coinbase products. Over the course of the year Coinbase Markets will introduce new features like low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services. These additions will allow for a more efficient price discovery to occur, creating tighter markets, deeper liquidity, and increased certainty of execution.

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