Tl:dr Earlier right this moment, the Wall Road Journal printed an article highlighting client-driven actions, which they appear to confuse with proprietary buying and selling.
In contrast to lots of our opponents, Coinbase doesn’t function a proprietary buying and selling enterprise or act as a market maker. In actual fact, one of many aggressive strengths of our Institutional Prime platform is our company solely buying and selling mannequin, the place we act solely on behalf of our purchasers. Consequently, our incentives and our purchasers’ incentives are aligned by design.
Coinbase does, on occasion, buy cryptocurrency as principal, together with for our company treasury and operational functions*. We don’t view this as proprietary buying and selling as a result of its goal just isn’t for Coinbase to learn from short-term will increase in worth of the cryptocurrency being traded.
Increasing institutional participation in web3 past HODLing
As extra establishments have change into considering investing in crypto, we’re rolling out new options to assist. A method we intend to serve our institutional purchasers is thru a small newly shaped crew referred to as Coinbase Danger Options (CRS).
CRS presents options to classy institutional traders who search publicity to the crypto asset class. A few of these traders are nonetheless getting acquainted with crypto markets and ask for our help in managing dangers and collaborating in protocols. The aim of CRS is to broaden institutional participation in web3 past HODLing.
In doing this, we’re following a properly trodden path on Wall Road the place monetary companies companies present purchasers a number of methods to get publicity to new asset courses and handle sure dangers. We have now instruments and insurance policies in place that mirror greatest practices within the monetary companies trade and are designed to handle conflicts of curiosity.
*In December of 2021 we precisely outlined our funding exercise in digital property as a part of our testimony to Congress, which you could find here.
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