Coinbase Inc. ($COIN) has finally opened its Prime brokerage services to nearly 9,000 of its institutional investors, after launching the Beta version back in May. While Coinbase continues to rule the retail market, its Prine brokerage service would open the gates for any institutions to get access to the trading tools and services.ADVERTISEMENT
The Coinbase Prime Brokerage services constitute advanced trading, battle-tested custody, and financing in a single solution. The crypto trading giant who has been the primary choice of many institutions in the US for their Bitcoin purchase-including Tesla now wants to open a new avenue dedicated to institutional investors only.
“We have been working tirelessly since our beta launch in May to ensure that Coinbase Prime is the most comprehensive platform for institutional investors. Today, we’re officially launching Coinbase Prime to all institutions. Coinbase Prime combines advanced trading, battle-tested custody, and financing in a single solution. Along the way, we’ve continued to add more venues to our smart router which allows clients to achieve the best available price, more assets to our custody capability, enhanced our post-trade reporting capabilities, and added to our post-trade credit financing options.”
Coinbase Focuses on Development Despite Regulatory Uncertainties
Coinbase made a spectacular debut on Nasdaq in April this year after a slight delay due to a CFTC investigation. The crypto exchange has made stellar progress since its public debut accumulating over 50 million registered users and over $1 billion in quarterly profits. The exchange also managed to gain regulatory approval in Japan and Germany.
The US Securities and Exchange Commission earlier this month threatened Coinbase with a lawsuit over its unreleased lending product. The exchange claimed SEC refused to offer any clarity as to why their product qualifies as security which made things even more frustrating. Brian Armstrong, the CEO of the exchange took to Twitter to lash out at the regulatory body for their opaque nature of operations and demanded better clarity around security regulations.
Coinbase Adds Support for Two Ethereum-Based Altcoins Across All of Its Platforms
Top US crypto giant Coinbase is adding two Ethereum (ETH) powered altcoins to its arsenal of tokens.
After their initial launch on Coinbase Pro, BadgerDAO (BADGER) and Rarible (RARI) are now available to buy, sell, convert, store, send and receive on the company’s retail trading platform Coinbase.com and its iOS and Android applications.
BADGER is a decentralized autonomous organization (DAO) with the purpose of building infrastructure and products that help spur Bitcoin’s growth as a usable asset across other blockchains.
At time of writing its BADGER governance token is trading at $28.47, down by 7.5% on the day according to CoinGecko.
RARI is the token that powers digital artist and creator community-owned non-fungible token (NFT) marketplace Rarible.
Rarible is a non-custodial platform, meaning users always have control over their tokens, which are not held by Rarible. So far, the Rarible marketplace only supports Ethereum-based cryptos.
At time of writing, RARI is trading at $23.49, down 4.6% on the day according to CoinGecko.
Both altcoins recently surged in price after they were added to Coinbase’s professional trading platform.
Coinbase Pro lists two new altcoins and prices soar
Coinbase Pro, the trading platform for the largest US cryptocurrency broker, Coinbase.com, listed two more altcoins on Wednesday (13), Rarible (RARI) and BadgerDAO (BADGER). Both cryptocurrencies had a high after the announcement, with emphasis on RARI, which is already with a gain above 40% in the last hours, according to data from Coinmarketcap. See the performance of altcoins.
Before being announced by Coinbase, the RARI token had already gone through a high of about 30%, almost hitting the $23 mark last Monday. After listing, altcoin progressed to $27.59, the week’s highest value so far. At the time of writing, RARI is trading at approximately $27, which has risen in the last 24 hours by around 40%.
As described by Coinbase, the altcoin Rarible is also a token issued on the Ethereum blockchain, whose function is to feed its platform of the same name. It is a network that allows you to create, receive and market NFTs
BADGER, which had been gaining price since the beginning of the month, started to be worth more after listing on Coinbase. On Wednesday night, the currency reached US$40, but there was a correction and on this Thursday afternoon it is traded in the range of US$35, with an increase of approximately 13% in the last 24 hours. The cryptocurrency, however, is still far from reaching its highest price, which was US$ 85 in February this year.
BadgerDAO is a token issued on the Ethereum network that powers its autonomous decentralized organization of the same name. DAO is focused on bringing Bitcoin to the decentralized finance (DeFi) ecosystem in Ethereum and other blockchains, explains Coinbase.
Coinbase Advocates for Special Separate Crypto Regulator, Suggests Displacing SEC
Because of the SEC’s continuous witch hunt targeted at the crypto sector, Coinbase believes a separate regulator will be better. However, the SEC disagrees.
Major crypto exchange Coinbase wants the US Congress to create a separate special regulator for digital assets. The company says federal legislators should move to block the securities and exchange commission (SEC) from assuming control of the industry.
Coinbase has locked horns with US regulators – most notably the SEC – in recent months over compliance issues. SEC Chair Gary Gensler, is a known skeptic of digital currencies, particularly because they lack proper oversight. Furthermore, Gensler argues that several crypto exchanges trade coins that do not comply with investor protection laws. Unsurprisingly, he opposes the idea of a separate crypto regulator and is discouraging lawmakers from doing so.
As a result, leading crypto exchange Coinbase plans to publicly release a document with proposals for crypto regulation. It opines that crypto market players are not clear on which federal agencies should oversee which particular assets. Furthermore, the exchange emphasized that its proposal takes into account feedback from policymakers as well as crypto’s unique traits.
Coinbase and SEC Differ on Proposed Crypto Regulator Idea
Coinbase’s chief policy officer, Faryar Shirzad, acknowledged that the exchange does not expect its proposal to kick into effect immediately. However, the crux of Coinbase’s move for a separate regulator is to induce conversations around the matter and create more crypto awareness. In Shirzad’s words on suggesting the next plan of action:
“…what they can do is evolve the debate in ways that are helpful for everyone, including members of Congress who are increasingly focusing on this area.”
Gensler, however, does not agree even a little bit. Speaking at a congressional hearing which took place last week, the SEC Chair said:
“I would say, cautionary note: If Congress were to carve something out of the securities law, it could also undermine 90 years of economic success and undermine the 7,000-plus issuers…”
Both the SEC and Coinbase further traded soundbites in statements issued for and against the idea of a separate crypto regulator. In addition, Coinbase’s proposal comes amid the Biden administration actively ramping up oversight of crypto assets. The said assets also include stablecoins whose value is in line with the US dollar.
Coinbase’s Proposed Crypto-Lending Scheme
Back in September, Coinbase CEO Brian Armstrong tweeted a series of messages alleging that the SEC was investigating its crypto-lending program. The Commission asked Coinbase to desist from going forward with what it perceived as an unregulated initiative. Furthermore, it threatened to take legal action against the exchange if it did not heed the regulator’s warnings. Armstrong criticized the SEC’s actions, branding them as veiled intimidation tactics. In addition, the exchange’s CEO suggested other crypto companies already offer similar programs. Armstrong also accused the SEC of viewing Coinbase’s crypto-lending initiative as a violation without providing a reason.
“They refuse to tell us why they think it’s a security, and instead subpoena a bunch of records from us (we comply), demand testimony from our employees (we comply), and then tell us they will be suing us if we proceed to launch, with zero explanation as to why,” said he.