Coinbase announces custody trading OTC desk to facilitate cold storage trading

Mar 16, 2019, 4:30 am

Bhaswati S.

More Post

Coinbase, the San Francisco-based digital currency exchange, has announced its plans to integrate its Coinbase Custody service with its newly launched over-the-counter (OTC) desk, now known as Coinbase Pro, in order to enable users to trade directly from cold storage without having to move funds online for business purposes.

This move comes as a response to the client demand for cold storage trading since the launch of the OTC cryptocurrency trading desk in 2018.

As per a blog post on The Coinbase Blog, Tim Plakas refers to this as

Easy and immediate liquidity on their offline funds.

Sam McIngvale, the CEO of Coinbase Custody, describes this move as “the defacto way to trade.

Moreover, the integrated OTC and Custody client service teams will collaborate and provide a sole point of contact throughout the exchange, so that clients initiating positions can buy OTC and settle assets directly into the Coinbase Custody.

Coinbase also clarified that its OTC desk is agency-exclusive and KYC and AML policies have to be approved of before its counterparts can carry out business. Along with meticulous examination of these policies, the exchange will maintain anonymity for both counterparties while guaranteeing settlements.

BitGo, the blockchain security company, had launched their own custody trading product in 2019 itself, which can become a competitor worth taking note of. Even then, some users feel that owing to its acquaintance with larger institutional clients and company clients and its simplified trading process, Coinbase Custody might surpass BitGo and even contribute to this industry in a more significant way in the future.

Brand Partnership
Your brand needs a brand voice. Contact our marketing team for brand partnership with us.
Talk to Us
Join our Newsletter
Sign up to receive top tech stories daily delivered in your inbox
Share your thoughts. Enable the box to comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.