Coinbase’s growth over the past couple of years has been remarkable, to say the least. And now, the California based firm is using its team of ex-Wall Street executives to lure in institutional investors— entities that are hard to come by in the crypto world.
As per recent news reports, Coinbase is actively looking to take its business to a new level. Earlier this year, the company launched its broker business, Coinbase Prime, which along with a host of other offerings takes care of different niche financial domains including asset management, venture capital investing, and retail trading.
What’s Coinbase Offering?
With their latest efforts, the team behind Coinbase is trying to offer some of the services of a traditional prime broker, including the onboarding of large institutional clients and custody. However, what’s new is that the company is “preparing to offer margin finance as early as the end of this year”.
If that turns out to be the case, institutional investors will obtain the power to ‘borrow to invest’, which can help magnify their returns immensely.
In relation to the aforementioned matter, Richard Johnson from Greenwich Associates had the following words:
“Coinbase is pursuing a lot of different initiatives that make sense and take it closer to or are more similar to traditional finance: custody, financing, lending, security tokens, and the institutional portal. They have the resources to fund them and will surely have some successes.”
It is worth noting that Coinbase has already been successful in onboarding a $20 billion hedge fund through its prime business. Now the company’s efforts lay on working towards getting other hedge funds onto its trading platform.
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