Coinbase, the San Francisco-based cryptocurrency exchange already valued as high as $8 billion by itself, had a couple more additional positive developments recently. The company reportedly landed a $20 billion prime client and got its ads reinstated on Facebook.
Also Read: The Weekly: New Regulations, Blackrock Probes Market, Coinbase Gets Into Politics
$20 Billion Hedge Fund
Coinbase has been focusing on big institutional money recently, launching a custodial service this month and, earlier this year, establishing Coinbase Prime, a suite of tools specifically designed for institutions, along with an institutional coverage group headquartered in New York City to provide a higher level of service to these type of clients. And the strategy has apparently now started to bear fruit.
A $20 billion hedge fund has already signed up for the prime business according to “people familiar with the matter” cited by Business Insider. And additional massive hedge funds are being worked on by the Coinbase Prime team to possibly join the trading venue too. The lack of a prime brokerage to use is seen as the main hurdle for getting big money trading crypto as institutional players don’t like to risk it with a direct exposure to an exchange. Coinbase may have solved the issue by launching its own prime service, something that on Wall Street is usually reserved for mega-banks. The company is also reportedly planning to offer margin finance as early as the end of the year, allowing institutional investors to trade on borrowed capital for increased leverage.
Coinbase Ads Back on Facebook
The company also got good news on its retail side of the business, with its promotional posts allowed back on Facebook. CEO Brian Armstrong announced on social media that: “Facebook banned ads for crypto earlier this year. Proud to say we’ve now been whitelisted and are back introducing more people to an open financial system.”
After banning all crypto ads in January, Facebook has updated its policy in June to allow promotional content from “pre-approved advertisers.” With its position in the US market, and the money it can afford to spend on lawyers, it’s little surprise that Coinbase made it on the list.
Are these positive developments for the wider US crypto ecosystem? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Satoshi Pulse, another original and free service from Bitcoin.com.
The post Coinbase Gets $20 Billion Prime Client, Ads Back on Facebook appeared first on Bitcoin News.
https://news.bitcoin.com/coinbase-gets-20-billion-prime-client-ads-back-on-facebook/
