One of the greatest setting to purchase and sell digital currencies in the US, Coinbase is good to go to extend its institutional investors’ scope. The San Francisco-based company is focusing on the greatest pain point present in the crypto market which is the absence of a prime broker.
On Wall Street, brokers that work as the middlemen are the ones that keep the discussion going by sitting between the institutional investors, for example, hedge fund managers and trading venues like exchanges.
With regards to the crypto market, because of the entry barriers were high, these operations are not accessible. However, Coinbase has focused on this limitation by launching Coinbase Prime, a prime broker business. As expressed on its website, Coinbase Prime is a “professional trading platform for institutional clients”. It provides dedicated institutional coverage in terms of,
“A dedicated team of institutional coverage professionals based in NYC will guide you through the onboarding process, advise on execution strategies, and deliver best-in-class client services and support.”
In Coinbase Prime, the company is putting forth a portion of the services offered by the traditional prime brokers. Onboarding vast institutional customers and custody are few of those services that it has already reported.