Tl:dr Earlier at present, the Wall Road Journal printed an article highlighting client-driven actions, which they appear to confuse with proprietary buying and selling.Not like lots of our rivals, 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, now and again, 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 profit from short-term will increase in worth of the cryptocurrency being traded.Increasing institutional participation in web3 past HODLingAs extra establishments have develop into fascinated about investing in crypto, we’re rolling out new options to assist. A method we intend to serve our institutional shoppers is thru a small newly fashioned workforce referred to as Coinbase Danger Options (CRS).CRS provides options to stylish institutional traders who search publicity to the crypto asset class. A few of these traders are nonetheless getting accustomed to crypto markets and ask for our help in managing dangers and collaborating in protocols. The objective of CRS is to increase institutional participation in web3 past HODLing.In doing this, we’re following a nicely trodden path on Wall Road the place monetary companies corporations present shoppers a number of methods to get publicity to new asset lessons and handle sure dangers. We’ve got instruments and insurance policies in place that mirror finest practices within the monetary companies business and are designed to handle conflicts of curiosity.*In December of 2021 we precisely outlined our funding exercise in digital belongings as a part of our testimony to Congress, which you’ll find right here.
In response to the Wall Road Journal | by Coinbase | Sep, 2022