Coinbase’s partnership with Caspian; What does it mean for institutional investors?

Coinbase recently announced a partnership with a firm known as Caspian, which offers the first institutional grade full-stack cryptocurrency trading and risk management platform. This comes after Coinbase’s active involvement in the institutional investor space with the release of their products such as Coinbase Custody.

Caspian is a joint venture between Tora and Kenetic, and offers institutional grade trade orders and execution. The service also takes care of institutions’ compliance and risk management needs. It is connected with 25 trading platforms such as Coinbase, BitMEX, Gemini, Bitfinex, Poloniex, Huobi, OKEx, BitFlyer and Binance.

Caspian also stated that they will integrate with Coinbase Prime in order to deliver their products that offer sophisticated trading and portfolio management. They will also closely integrate with Coinbase’s other offerings for institutional investors such as Coinbase Custody, which offers secure cold storage for institutional investors. The CEO of Caspian Robert Dykes stated:

“We’re delighted to cement this important partnership with Coinbase, which will see one of the world’s leading digital currency trading venues join forces with one of the most exciting emerging crypto platforms.

He further added:

Our goal at Caspian has always been to make it is as frictionless as possible for professional traders and investors to trade and manage portfolios of cryptocurrencies in order to drive exponential growth in this market and we’re delighted that Coinbase shares this vision,”

David Willis, the COO of Caspian, spoke to AMBCrypto regarding the general state of institutional investors and regulation in the cryptocurrency space. He stated:

“You’ve seen a lot of new funds come on board this year and launch, and in the background we’re seeing the launch of different types of systems and pillars that institutions ultimately need to be able to run their business.”

He also spoke about the evolution of institutional grade cryptocurrency exchanges and custody solutions in general, such as Bakkt.

He went on to say:

“I see 2019 as being a year where a lot of these foundations that are being built this year will actually come more aligned to be able to fund more institutional growth in the space.”

On his reasons for creating Caspian, he stated:

“What we identified when we came into the crypto-space was that there was really no sophisticated and elegant trading system out there to support the growth of the asset class for institutions and professional traders. Caspian is repurposing traditional trading tech that exists for traditional asset classes for the crypto space.”

He went on to state that Caspian will be integrating custodial services from third party vendors. They will also integrate banking services from third-party vendors, and also with OTC desks to integrate. He went on to say:

“We will integrate with fund admins, auditors, exchanges decentralized exchanges so really think of caspian as the nexus to connect all these different parts of the cryptocurrency ecosystem into one elegant solution.”

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