The exchange based in San Francisco announced a partnership with a technology provider named Trading Technologies International. The main idea of these trading companies is to offer cryptocurrencies to traditional financial service firms. This is not the first time that Coinbase tries to get involved in the institutional investment world. Some months ago the company launched Coinbase Custody, a platform for big investors.
Cryptocurrencies for Wall Street Investors
With this new partnership, Coinbase will facilitate cryptocurrency trading for institutional investors like brokers, money managers, CTAs, hedge funds and other investors worldwide. Coinbase is already operator of the Global Digital Asset Exchange, known as GDAX. This trading platform is one of the most known globally and at the moment allows Litecoin, Bitcoin, Ethereum and Bitcoin Cash trading.
The partnership between Coinbase and Trading Technologies International will allow customers to trade spot and derivative market side by side. That will be available since March 1, 2018. That will allow important firms to have bitcoin spot prices and bitcoin futures on the same screen. This situation could potentially bring more profits when trading the spread between the two financial products.
CEO of Trading Technologies, Rick Lane commented:
“We are pleased to partner with Coinbase, the leading digital asset exchange, so that cryptocurrency traders of all styles are able to leverage our robust and powerful suite of trading tools. Furthermore, we have begun collaborating to deliver enhanced and asset-class-specific functionality on the TT platform for cryptocurrency trading.”
At the moment, Trading Technologies is connected to several markets worldwide, including the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME). The CBOE and the CME have been offering bitcoin futures since some weeks but they have managed a really low volume.
“The partnership between Coinbase and Trading Technologies will provide essential trading and hedging tools across them market,” said on the deal Adam White, General Manager of GDAX. “The offering is timed perfectly, just as futures on Bitcoin are taking from. TT provides one of the most powerful and ubiquitous tools to today’s futures trader,” he finished.
With this new platform, thousands of institutional clients will have the ability to trade the crypto spot market and 45 other markets. Besides that, Goldman Sachs, JP Morgan Chase and other Wall Street banks are included as clients.
This is not the first time that Coinbase tries to attract important investors to the cryptocurrency world. In general, these big investors like hedge funds and individuals with big portfolios, do not feel safe investing in the traditional cryptocurrency platforms. That’s why, Coinbase has developed a product designed just for these investors.
Coinbase Custody is the platform that gives trust and safety to the wealthiest investors in cryptocurrencies. Of course, these platforms are not free to use. Investors that are thinking to invest here must pay a $100,000 star-up fee and there will be monthly fees based on the assets.
Brian Armstrong, Co-Founder and CEO at Coinbase said:
“Today, we are announcing the launch of a new company to help institutional investors securely store digital assets: Coinbase Custody. Coinbase is already storing more than $9 billion of digital currency on behalf of our customers, and we are excited to bring a new product built specifically for institutional investors.”