Coinbase to Offer Block Trading to Institutional Clients
Cryptocurrency industry giant Coinbase is preparing to open an office in Chicago and add support for block trading in a bid to attract more institutional clients to GDAX, its professional trading platform.
High-volume brokers have a troublesome time executing orders at traditional cryptographic money trades since huge requests can cause noteworthy value swings in a market that remain relatively thinly-traded.
Coinbase, the valuations of the crypto exchange have soared tremendously over the last eight months and the latest acquisition of Earn.com values it at $8 billion, says company’s own reports.
As per the latest report of Business Insider, the crypto exchange is now planning to open an office in Chicago and provide block-trading facilities in a bid to further expand its institutional client base on its professional trading platform GDAX.
The service will presumably be offered through GDAX, which currently ranks as the world’s ninth-largest cryptocurrency exchange, with an approximate daily trading volume of $315 million. New York based exchange Gemini, which was co-founded by Cameron and Tyler Winklevoss, began offering block trading last month. Previously, Coinbase announced that it was launching a cryptoasset custodial service that will be open to clients seeking to store at least $10 million worth of assets.
With block trading, the orders are usually circulated outside the exchange’s order books and all the transactions are published later on a delay. This helps to subside the effect that large orders can have on crypto price swings.
Gemini exchange headed by the much famous Winklevoss Twins started the block trading facility. Same way, A Goldman Sachs-backed Circle’s cryptocurrency trading desk recently doubled the minimum size for bitcoin orders to $500,000, citing significant demand from large-scale traders and also started a variety of other firms offer over-the-counter (OTC) trading for institutional buyers.
A former trading Director at Barclays named Hunter Merghart, has been recently hired by Coinbase. He has trading experience in the equity trading sector for over a decade and before Before Barclays, He was Vice President at RBC Capital Markets.