Tl:dr Earlier as we speak, the Wall Road Journal printed an article highlighting client-driven actions, which they appear to confuse with proprietary buying and selling.
Not like a lot of our opponents, Coinbase doesn’t function a proprietary buying and selling enterprise or act as a market maker. The truth is, 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 shoppers. Consequently, our incentives and our shoppers’ incentives are aligned by design.
Coinbase does, every so often, 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 will not be 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 develop into serious about investing in crypto, we’re rolling out new options to assist. A technique we intend to serve our institutional shoppers is thru a small newly shaped workforce referred to as Coinbase Danger Options (CRS).
CRS gives options to classy institutional buyers who search publicity to the crypto asset class. A few of these buyers are nonetheless getting accustomed to crypto markets and ask for our help in managing dangers and taking part in protocols. The objective 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 providers companies present shoppers a number of methods to get publicity to new asset lessons and handle sure dangers. We have now instruments and insurance policies in place that mirror greatest practices within the monetary providers business 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’ll find right here.