Just recently, Coinbase announced the launch of some of its new services, namely, Conibase Custody and Coinbase Prime, the latter being a new platform specially created to offer a great series of instruments destinated for institutional investors who want to join cryptocurrency trading. After the news has been released, many speculations emerged, some crypto enthusiasts voicing that this action will push the market faster toward a market cap of $1 trillion.
Trying to become the ultimate champion of the cryptocurrencies market, Coinbase considered attracting the attention of institutional investors which could bring big money to the market booting the cryptocurrency market capitalization.
In its most recent statement, the San Francisco-based cryptocurrency exchange operator released its Coinbase Prime which is, as they describe it, “a new platform specifically designed to provide a set of tools and services that institutional investors rely on when trading with cryptocurrency.”
Coinbase Prime aims to attract institutional investors into the cryptocurrencies market
The goal of the program is to overcome the shortcomings in infrastructure that the institutions demand by providing “loan and margin financing products to qualified clients.”
“We are delighted to help institutions around the world participate in this emerging asset class,” stated the Coinbase team.
The main reason why institutional investors avoid trading on the cryptocurrencies market is the lack of some clear crypto regulations and the needed instrument for a secure and reliable trading.
The Coinbase platform will supply a decentralized liquidity reservoir for all Coinbase instruments. Over the year, it will “introduce new features such as low latency performance, local data center colocation services, institutional connectivity and access, and clearing and settlement services”.
Furthermore, financial institutions lack the right resources and instruments to be able to operate in the cryptocurrencies market. By supplying all the utilities and facilities to these institutional investors, Coinbase Prime will allow these investors to embark on an easy journey into the cryptocurrency universe.
The final outcome for the cryptocurrencies market, according to some crypto enthusiasts, will be the $1 trillion crypto market cap milestone.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.