In response to the Wall Street Journal

In response to the Wall Street Journal

Tl:dr Earlier right this moment, the Wall Street Journal revealed an article highlighting client-driven actions, which they appear to confuse with proprietary buying and selling.

Unlike lots of our rivals, Coinbase doesn’t function a proprietary buying and selling enterprise or act as a market maker. In reality, 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. As a consequence, our incentives and our shoppers’ incentives are aligned by design.

Coinbase does, once in a while, 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 objective isn’t for Coinbase to learn from short-term will increase in worth of the cryptocurrency being traded.

Expanding institutional participation in web3 past HODLing

As extra establishments have turn into fascinated about investing in crypto, we’re rolling out new options to assist. One approach we intend to serve our institutional shoppers is thru a small newly shaped group referred to as Coinbase Risk Solutions (CRS).

CRS gives options to classy institutional buyers who search publicity to the crypto asset class. Some of those buyers are nonetheless getting acquainted with crypto markets and ask for our help in managing dangers and taking part in protocols. The aim of CRS is to increase institutional participation in web3 past HODLing.

In doing this, we’re following a effectively trodden path on Wall Street the place monetary providers corporations present shoppers a number of methods to get publicity to new asset courses and handle sure dangers. We have instruments and insurance policies in place that mirror greatest practices within the monetary providers 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 yow will discover here.

In response to the Wall Street Journal was initially revealed in The Coinbase Blog on Medium, the place persons are persevering with the dialog by highlighting and responding to this story.

Leave a Reply

Your email address will not be published.

%d bloggers like this: