During the last few months, more than 100 hedge funds have announced their intentions of investing in cryptocurrencies, something unseen in the market until recently.
The cryptocurrency market is expanding every day with new developments popping up from time to time.
The company will launch soon a new platform called Coinbase Custody.
Coinbase Custody, launched in partnership with "an SEC-regulated broker-dealer", provides safe storage of cryptoassets, paired with third-party auditing.
Komainu is a new venture established to help overcome barriers for institutional investment in crypto-assets with a custody solution and offering new services, standards and best practices.
Coinbase has already stored more than $20 billion of cryptocurrency on behalf of customers through its exchange, but until the announcement did not have a separate product to handle that. Two recent examples are Coinbase's new institutional focus and Nomura's new venture.
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"The cryptocurrency market is maturing rapidly as more sophisticated institutional participants enter the space". Over the course of the year, Coinbase will be introducing new features such as "low latency performance, on-premise datacenter colocation services, institutional connectivity and access, and settlement and clearing services".
The Coinbase Institutional Coverage Group will also sell the Coinbase service to additional investors who want to start investing in crypto.
Another unique product launched alongside Coinbase Markets and Coinbase Custody is the new Coinbase Prime solution.
Coinbase Prime will accelerate adoption of cryptocurrency worldwide by helping institutions everywhere participate in this emerging asset class. Among the custody partners are Autonomous Partners, boostVC, and WaldenBridge Capital.
The company will also be opening a new engineering office in Chicago to continue developing Coinbase Markets, which provides a centralized pool of liquidity for all its products. These additions will allow for a more efficient price discovery to occur, creating tighter markets, deeper liquidity, and increased certainty of execution. The Institutional Coverage Group will be focusing on providing best services to its institutional clients by providing sales, trading, research, market operations, and support service to its clients.
While Coinbase has said it doesn't consider tokens on its exchanges to be securities, the regulatory view on that is hazy.
The Coinbase Prime solution powered in collaboration with Coinbase Markets and Coinbase Custody exclusively developed and created to "provide essential tools and services that allow institutional investors trading in cryptocurrency", it will also offer both lending and margin financing products, OTC trading, algorithmic trading, market data, and research products to qualified clients, as per the sources.