While some inflate alarmist sentiments, others are looking for ways out of the crisis. Thus, the Coinbase Exchange begins to trade in an over-the-counter cryptocurrency contract. This is expected to attract institutional investors to work more actively with this tool.
At the end of October, the creation of Coinbase Custody Trust Company LLC, which will provide services for the storage of cryptocurrencies, was announced. This was supposed to attract institutional investors, for whom custodial services are crucial when working with Bitcoin, Ethereum, Ripple. At the same time, the site could not offer its customers a full range of services to work with this asset. Now it is undergoing a licensing procedure, after which it will be able to offer:
All this will allow Coinbase to provide a comprehensive product for small and large investors. One of the steps to advance towards this goal was to enter the over-the-counter market of cryptocurrency trading.
The launch of the OTN-direction allows you to create optimal conditions for institutional players. Already, there are a number of companies that offer their OTC products. However, Coinbase has a significant competitive advantage. Due to the fact that it works with a huge number of buyers and sellers, the exchange will be able to match customer orders. As a result, the conditions for cooperation will be much more profitable.
As repeatedly stated, the company seeks to transfer its activities under the full control of the SEC. Therefore, it adheres to all the conditions imposed by the Securities and Exchange Commission for a similar type of business. This will allow Coinbase to attract large customers in the face of institutional investors.