Coinbase launches OTC crypto trading desk for institutional investors
California-based crypto company Coinbase has announced that it has launched an over-the-counter (OTC) crypto trading desk. The new platform is designed to attract more institutional investors to the company and will compete against other similar offerings already in place through Goldman Sachs-backed Circle and the Gemini exchange.
According to Christine Sandler, Director of Institutional Sales for Coinbase, the move is designed to give institutional investors a flexible platform while responding to the demand for more OTC offerings. She adds, “We launched our OTC business as a complement to our exchange business because we found a lot of institutions were using OTC as an on-ramp for crypto trading. We felt this was a huge benefit to our clients to actually leverage both our exchange and our OTC business.”
OTC trading desks are the preferred method for conducting transactions that involve large amounts of money. They allow investors to trade directly with each other, while not dumping the cryptocurrency assets on exchanges where they could negatively influence prices.
Coinbase is working to become a fully regulated broker-dealer. It has been in discussions with the Securities and Exchange Commission (SEC) in order to receive regulatory approval to offer a number of investment solutions, such as crypto securities trading and new data products. It has also opened its Coinbase Prime to allow institutional investors to trade any of the available assets and has launched additional order books that include interfaces through the Internet, Bloomberg IB, Skype and email.