According to Business Insider, COINBASE is not planning to stop and is already seeking partnerships with other large hedge funds. Also, the company is apparently willing to offer margin financing. If this happens, institutional investors will be able to borrow to trade.
“Coinbase is pursuing a lot of different initiatives that make sense and take it closer to or are more similar to traditional finance: custody, financing, lending, security tokens, and the institutional portal. They have the resources to fund them and will surely have some successes,” said
However, Robert Hockett, a professor of law at Cornell University, has expressed concern regarding Coinbase’s ambitions in his interview with Business Insider. He believes that its decision to launch prime brokerage service might force SEC, which has earlier stated that, to kick in.
“This raises conflict concerns, given Coinbase’s also running a coin exchange, reminiscent of those that the Commission has found when securities firms have attempted to combine these two roles,” he says.
It is noteworthy that Coinbase has recently launchedwhich ” is officially open for business, providing secure storage of crypto assets for institutions in both the US and Europe.” Besides, it is openly , including Cardano (ADA), Basic Attention Token (BAT), Stellar Lumens (XLM), Zcash (ZEC) and 0x (ZRX).
Coinbase’s story reiterates the notion of crypto becoming mainstream thanks to institutional investors. Thus, a, founder of ADA, Wall Street might bring tens of trillions of dollars into crypto. At the same time, , a company which offers to invest both into the crypto and traditional markets, secures close to $5,5 mln of funds a week from institutional players. is also apparently attracting making the cryptomarket less and less marginalized. The fact that David Solomon, who seems to be a crypto enthusiast, has now become , which, in turn, launched BTC trading desk in May is even more encouraging.
But not everybody is content with crypto gaining ground. urged the authorities to prohibit U.S. citizens from buying or mining cryptocurrencies., Jerome Powell, for example, lambasted during testimony before the United States House Committee on Financial Services. Particularly, he noted that the Federal Reserve is not looking into the option of creating a digital currency. Brad Sherman, a Democrat Congressman, even