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Coinbase’s partnership with Caspian; What does it mean for institutional investors?

Anirudh VK



Coinbase's partnership with Caspian; What does it mean for institutional investors?
Source: Unsplash

Coinbase recently announced a partnership with a firm known as Caspian, which offers the first institutional grade full-stack cryptocurrency trading and risk management platform. This comes after Coinbase’s active involvement in the institutional investor space with the release of their products such as Coinbase Custody.

Caspian is a joint venture between Tora and Kenetic, and offers institutional grade trade orders and execution. The service also takes care of institutions’ compliance and risk management needs. It is connected with 25 trading platforms such as Coinbase, BitMEX, Gemini, Bitfinex, Poloniex, Huobi, OKEx, BitFlyer and Binance.

Caspian also stated that they will integrate with Coinbase Prime in order to deliver their products that offer sophisticated trading and portfolio management. They will also closely integrate with Coinbase’s other offerings for institutional investors such as Coinbase Custody, which offers secure cold storage for institutional investors. The CEO of Caspian Robert Dykes stated:

“We’re delighted to cement this important partnership with Coinbase, which will see one of the world’s leading digital currency trading venues join forces with one of the most exciting emerging crypto platforms.

He further added:

Our goal at Caspian has always been to make it is as frictionless as possible for professional traders and investors to trade and manage portfolios of cryptocurrencies in order to drive exponential growth in this market and we’re delighted that Coinbase shares this vision,”

David Willis, the COO of Caspian, spoke to AMBCrypto regarding the general state of institutional investors and regulation in the cryptocurrency space. He stated:

“You’ve seen a lot of new funds come on board this year and launch, and in the background we’re seeing the launch of different types of systems and pillars that institutions ultimately need to be able to run their business.”

He also spoke about the evolution of institutional grade cryptocurrency exchanges and custody solutions in general, such as Bakkt.

He went on to say:

“I see 2019 as being a year where a lot of these foundations that are being built this year will actually come more aligned to be able to fund more institutional growth in the space.”

On his reasons for creating Caspian, he stated:

“What we identified when we came into the crypto-space was that there was really no sophisticated and elegant trading system out there to support the growth of the asset class for institutions and professional traders. Caspian is repurposing traditional trading tech that exists for traditional asset classes for the crypto space.”

He went on to state that Caspian will be integrating custodial services from third party vendors. They will also integrate banking services from third-party vendors, and also with OTC desks to integrate. He went on to say:

“We will integrate with fund admins, auditors, exchanges decentralized exchanges so really think of caspian as the nexus to connect all these different parts of the cryptocurrency ecosystem into one elegant solution.”

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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.


Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021





Bitcoin [BTC] will likely reach $100,000 with a market cap of over $2 trillion before the end of 2021
Source: Unsplash

The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.

According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.

Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,

“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”

Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,

“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”

Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,

“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”

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