Coinbase, the poster child for all cryptocurrency exchanges in the US, is launching an agency-only OTC [Over-The-Counter] trading in response to client demand. Coinbase’s Head of Coverage, Christine Sandler, spoke about the launch of the OTC business in an interview with Cheddar recently.
Sandler said that the OTC business would act as a compliment to the Coinbase’s exchange business and said that this could benefit clients who were seeking OTC as an on-ramp for cryptocurrency trading.
“So we felt that this was a huge benefit to our clients, who can actually leverage both our exchange and our OTC business. So we’re agency only and we have plans to expand the service offering to offer things like delayed settlement and potentially integrating with our custody solution as well.”
She spoke about other institutions that provided the same services like Circle or Genesis and added that the timing was “opportunistic” and that they were just “reacting to their customer requirements”. She also stated that unlike others, they were “matching client orders”.
Sandler spoke about the new initiative of Coinbase custody for asset allocators and said that these asset allocators actually help attract potential partners. She continued:
“So we found that a lot of our institutional clients have opportunities where limited partners are coming in. So asset allocators are actually representing those potential partners…and help educate the limited partners for the benefit of our clients so they can attract those funds.”
Referring to the bear market that has been hanging around the crypto-verse, Sandler said that their “crypto first clients” were staying strong and committed and believed in the technology behind cryptocurrencies. Furthermore, she explained how the crypto-ecosystem has been flooded with volatility and has caused cryptocurrencies to move to the downside and added:
“There’s one small silver lining to this volatility…it is that crypto has been front and center of the mainstream financial media the last few weeks and I think that’s driven and forced a lot of institutions to think if this is an opportunistic investment point for crypto at this point.”
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