September 20, 2021

Coinbase opens brokerage service to all institutionalists

Coinbase opens brokerage service to all institutionalists

Nasdaq-listed bitcoin exchange Coinbase has announced that it is opening its Coinbase Prime cryptocurrency brokerage platform to all institutional investors.

Coinbase Prime combines advanced trading, proven storage and funding in a single solution, said Vice President of Institutional Products Greg Tusar.

The company updated the platform in May 2021, introducing a beta version with enhanced functionality.

The launch of Coinbase Prime follows the acquisition of cryptocurrency broker Tagomi. The media reported on the deal in November 2019, but both companies denied it at the time. Coinbase only confirmed the takeover seven months later.

Tusar recalled that the exchange's brokerage arm has helped to complete a number of major deals in the industry during its tenure, including the purchase of crypto assets by Meitu, MicroStrategy and One River.

Ilon Musk's Tesla was also reportedly used by Coinbase Prime to acquire $1.5bn worth of bitcoin. 

In April, Coinbase announced a takeover of cryptocurrency derivatives market data provider Skew to expand its brokerage business capabilities.

Coinbase Prime offers the tools and services institutions need to invest in digital assets, from working with our team to provide services to assess market conditions to native cryptocurrency functions such as staking and management, it said in a statement.

As a reminder, Coinbase went public on 14 April 2021 on the Nasdaq. On the eve of the listing, CEO Brian Armstrong allowed the company's share of its OTC business to grow to 50% in the long term.

The firm generated $2.2bn in revenues in the second quarter, including $1.9bn in revenue from exchange fees.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

View All Posts By Jack Evans