Launched earlier this year service for institutional investors from Prime Coinbase cryptocurrency company Coinbase has attracted the cooperation of the first hedge Fund with assets of $20 billion, according to Business Insider.
The team also Coinbase is working to attract other large hedge funds to their trading platform.
As writes the edition, the company Coinbase undertook the difficult task — the creation of a full service Prime broker on wall street, helping institutional investors to make cryptocurrency transactions.
Although Prime brokers are on the main financial street in new York city are not uncommon, high barriers to entry in the stock market discourages potential investors from dealing with them.
Note services the Prime broker provides hedge funds a wide set of operational services (clearing, operational support, settlement of transactions and risk management), thereby helping companies focus solely on investment strategies.
“Without a primary broker trading firms directly subject to events that may occur with the exchange, such as hacking, regulatory problems, operational and technological issues”, — said the head of the venture capital firm CMT Digital Colleen Sullivan.
Writes BCfocus, it is not known whether the Commission securities and exchange Commission (SEC) to prevent the activities Coinbase Prime.
Also in the plans Coinbase by the end of the year to provide institutional services to investors for margin trading.
“Coinbase is developing a variety of initiatives that move the company closer to traditional Finance: storing, financing, loans, security tokens and an institutional portal. The company has the resources to Finance these projects, and I believe they are waiting for some success”, — said the consultant to the company from the financial services industry Greenwich Associates, Richard Johnson.
We will remind, new products for institutional investors seeking to enter the market of digital currency company Coinbase introduced in may this year.