Major crypto exchange and wallet Coinbase has launched a spate of products and services aimed at key players in the financial sector. Yesterday’s announcement, which included the launch of over-the-counter (OTC) for institutional investors, comes as the San Francisco-based crypto exchange seeks to cement its dominant position in an increasingly competitive U.S. digital currency market.
According to news outlet Cheddar, Coinbase’s OTC trading service will let institutional investors carry out direct trades between one another. Head of sales at the exchange Christine Sandler said that the platform decided to launch OTC trading due to the increased demand for OTC crypto trading from institutional investors. She stated:
“We launched our OTC business as a complement to our exchange business because we found a lot of institutions were using OTC as an on-ramp for crypto trading. We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”
Also, Sandler added that the new service could be integrated into the exchange’s custody. Institutional funds are generally required by law to use a custodian to store their assets and protect them from theft. Among the notable digital assets, Coinbase holds are Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH) and Litecoin (LTC).
At the start of November, Coinbase started to allow its customers to trade any digital assets that are trading on Coinbase Prime. Clients can also order books through the platform’s web interface, phone, email, Bloomberg IB, and Skype. The document reads in part:
“Trades settle seamlessly and instantly, with funds available for immediate withdrawal” and “no possibility of a failed trade and no need to chase down wires and blockchain transfers.”
In June 2018, Coinbase initiated the process to become fully regulated broker-dealer by the U.S Securities and Exchange Commission (SEC). Becoming licensed could potentially open the doors to the platform supporting more coins.