Coinbase Bringing New Trading Tools with Caspian Deal
Cryptocurrency trading platform Caspian is partnering up with American exchange Coinbase to provide new tools for institutional investors looking to get into cryptocurrencies. Caspian recently announced a $16 million USD investment ahead of its public token sale, slated to begin in October.
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New Trading Tools for Coinbase Customers
According to an announcement from Caspian, the deal will bring trading and portfolio management functionality to users of Coinbase Prime, which is the exchange’s suite of tools targeted at institutional investors. This will allow Coinbase’s customer base to use Caspian’s platform–still in beta–which includes access to 24 different crypto exchanges, a suite of trading algorithms, risk management features, and compliance monitoring tools.
Coinbase’s Director of Institutional Sales, Kayvon Pirestani, said in a statement that:
“By working together, Coinbase and Caspian will deliver institutional-grade order and risk management tools to the growing number of professional crypto trading firms around the world. Customers will be able to take advantage of the best elements of both platforms — accessing Coinbase’s extensive historical market data and deep pool of liquidity, and combined with Caspian’s suite of seamless trading tools.”
Robert Dykes, the CEO of Caspian, added that the goal of the firm was “to make it is as frictionless as possible for professional traders and investors to trade and manage portfolios of cryptocurrencies in order to drive exponential growth in this market and we’re delighted that Coinbase shares this vision.”
Caspian Raised $16 Million USD Ahead of Token Sale
A public sale for Caspian’s CSP token is planned for the beginning of October, with $16 million USD already raised during its pre-sale period from the likes of Galaxy Investment Partners, Global Advisors, Octagon Strategy, Kenetic, Techemy Capital, and Bletchley Park. Caspian also announced it had entered into strategic partnerships with BlockTower Capital and Galaxy Digital Capital Management, run by former Goldman Sachs partner Mike Novogratz.
On September 16th, Caspian said that it already had 15 customers using its product, and that 170 “institutional-grade” customers were considering the same thing. The firm further added that its platform will leave beta and go live once the public portion of its ICO begins on October 3rd.
Bringing Institutional Investment into Crypto
Caspian was created in March of this year as the result of a partnership between Tora, a provider of investment management technologies, and Kenetic, a blockchain investment firm based in Hong Kong. Caspian’s stated goal is to provide cryptocurrency trading tools to traditional financial industry players like institutional investors, market makers, and asset management firms. It provides compliance and reporting tools to meet regulatory requirements, which will become a larger issue if cryptocurrencies gain greater adoption in regulated financial markets, as they slowly seem to be doing.
Coinbase announced its Prime platform in May, which plans to offer OTC and algorithmic trading, research products, market data, lending, and margin financing products to large financial firms. Coinbase Vice President Adam White told CNBC in July that he had seen “unprecedented” interest in cryptocurrencies from institutional investors.
Have your say. Could the Caspian-Coinbase deal lead to further investment by institutional investors in crypto in 2018? Or is there still more work to be done, like in custody, before that happens?
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