- Coinbase holds $20 billion institutional assets in custody.
- The crypto exchange’s trading volumes are 20 times what they were at the beginning of the year.
Coinbase now has $20 billion in its institutional assets under custody. Head of Institutional Coverage at Coinbase, Brett Tejpaul, says that these institutional assets were $6 billion in April and have increased by $14 billion.
This is more than a three-time increase. Remarkably, the crypto exchange’s trading volumes are 20 times what they were at the beginning of the year. Moreover, the firm is now measuring new capital coming in for Bitcoin in the billions. Week after week, it experiences an explosion of incoming capital.
Tejpaul pointed out that,
It’s a phenomenal time for crypto … Sometimes timing is everything. We have an explosion of activity.
Reasons for Institutional Asset Growth at Coinbase
Tejpaul told interviewer Eliisabetta Bartolini, partner at Heidrick & Struggles, that the growth results partly from Coinbase’s acquisition of Tagomi. The crypto exchange acquired Tagomi in May. In detail, Tagomi is a prime brokerage platform specializing in digital asset trading.
Tejpaul particularly added that,
It radically transformed our ability to cater to institutional clients that want to use smart order routing and algorithmic execution.
Additionally, the exchange now has J.P. Morgan Chase as its banking partner and Deloitte as its auditor. Both of those firms went through one to two-year period of due diligence to satisfy themselves that Coinbase has the right KYC and AML.
Major Companies Invest in Bitcoin
Lastly, Tejpaul acknowledges the bullish momentum in the crypto market. Recently, American billionaire hedge fund manager Paul Tudor Jones invested about 2% of his assets in Bitcoin. As a result, the crypto exchange has seen an unbelievable wave of institutions that follow Paul’s lead.
Firstly, Nasdaq-listed Microstrategy has invested $425 million in Bitcoin. In addition, Microstrategy CEO Michael Saylor has personally invested $240 million in BTC. Also, famed hedge fund managers Stan Druckenmiller and Bill Miller joined the list of investors who own Bitcoin.