Digital asset exchange provider Coinbase and professional trading software developer Trading Technologies International (TT) have entered into a strategic partnership to allow investors to trade spot and derivatives markets simultaneously. The first of its kind, the service will become available in March this year, a joint statement by Coinbase and TT said.
The deal also gives investors access to professional cryptocurrency trading functionality while opening doors to the institutional trading world.
“The partnership between Coinbase and Trading Technologies will provide essential trading and hedging tools across the market. The offering is timed perfectly, just as futures on Bitcoin are taking form. TT provides one of the most powerful and ubiquitous tools to today’s futures trader. This, paired with GDAX’s crypto-spot market liquidity, will provide thousands of institutional investors a seamless and secure way to trade digital assets,” commented Adam White, general manager of Coinbase-run Global Digital Asset Exchange (GDAX).
Michael Kraines, chief commercial officer of TT, said that the strategic alliance between Coinbase and TT would allow the institutional community to utilize the “best-in-class professional trading tools to access both listed derivative and GDAX’s exceptional cash cryptocurrency offerings,” for the first time and side by side on one screen. “Together, TT and Coinbase are setting the stage for the next evolution of the cryptocurrency markets and leveling the proverbial playing field for all,” he added.
GDAX is specifically designed for institutional investors trading in cryptocurrencies and is the largest digital asset spot market in the U.S. Coinbase is regulated by the New York Department of Financial Services and more than 30 other state oversight bodies in the money transfer space.
TT CEO Rick Lane commented: “We are pleased to partner with Coinbase, the leading digital asset exchange so that cryptocurrency traders of all styles can leverage our robust and powerful suite of trading tools. Furthermore, we have begun collaborating to deliver enhanced and asset-class-specific functionality on the TT platform for cryptocurrency trading.”
Coinbase to launch custodian offering
The statement also revealed that Coinbase was preparing to launch a custodian offering called Coinbase Custody in the months ahead. It will deliver stringent financial controls as well as secure storage, targeting institutional investors that seek to trade virtual currencies.
Futures trading allows cryptos to enter mainstream finance
The December launch of cryptocurrency futures contracts by two of the leading futures trading houses in the U.S. has allowed Bitcoin and other digital currencies to step into the mainstream financial system.
The Chicago Board Options Exchange (CBOE) was the first to offer Bitcoin futures contracts early last month, triggering a price increase in the cryptocurrency. From $15,000 a coin, Bitcoin quickly jumped to $17,000 when CBOE opened the contracts.
Two weeks later, CME started Bitcoin futures trading, sending the futures for January 2018 trade at $19,215. The CME digital currency futures rely on a Bitcoin Reference Rate (BRR) calculated on the price of selected exchanges every day between 3 pm and 4 pm London time.