Coinbase Rolls Out Cross-Border Wire Transfers for Institutional Investors in Europe, Asia
The exchange aims to expand its market reach with high-volume investors such as hedge funds, proprietary trading firms, and endowments.
US cryptocurrency exchange Coinbase has launched a package of new services which target institutional investors from Europe and Asia. The new products, announced in a press release yesterday, are part of the exchange’s strategy to diversify its customer base with new clients outside of its home market.
The wire service uses the international payment network SWIFT and allows Coinbase Pro and Prime’s clients to fund their accounts from non-US bank holdings. Currently, in Europe, the exchange is available in all 28 members of the European Union (EU) as well as Switzerland, Monaco, Lichtenstein, Norway, Iceland, Guernsey, Jersey, Isle of Man, Andorra, San Marino, and Gibraltar. In Asia, Coinbase services target only Singapore, and they are not available in the lucrative but mainly retail-oriented crypto markets of Japan and South Korea, which have millions in trading volumes on a daily basis.
“For customers in countries where fiat rails are not yet available, we will now support inbound and outbound SWIFT transfers from non-US bank accounts,” Coinbase said.
Along with the wire transfers, Coinbase expanded its custody service to Europe and Asia. The storing product, licensed by New York’s State Department of Financial Services, targets only qualified investors.
The company also unlocked its over-the-counter (OTC) European and US trading desk for selected Coinbase Prime customers from around the globe. The Coinbase OTC works as an agency only because it does not trade against clients, on a principal or proprietary basis, the company said. In recent months, over-the-counter crypto trading has become popular among institutional investors as it allows them to avoid significant price volatility and to execute large volume trades.
“In the past 12 months, hundreds of crypto-first hedge funds have launched around the world, and many hundreds more traditional institutions such as proprietary trading firms, family offices and endowments have begun actively trading digital assets,” the exchange explained.
Last year, Coinbase rolled out several initiatives for institutional investors with the aim to become more competitive and to diversify its mainly retail customer base.