18 Mar 2019
Clients of the US cryptocurrency exchange platform -Coinbase has received the answers to their demands. In a recent press release, the company announced that its services now have their new OTC desk. We can recall that Coinbase launched the over-the-counter desk newly. Well, they have obliged to the demands of their users with this integration. At least that’s what the company announced. This recent development implies that trading on the platform will be simpler. Instead of moving their funds online for trades, they can complete them directly offline.
The CEO of CoinBase Sam McIngvale speaking about the recent action states that their users have been pushing for it. According to him, as soon as Coinbase launched the OTC desk, the demands for cold storage became eloquent. Many of their clients started asking for the cold storage trading capability.
According to what the company wrote in their blog post, two teams will be in charge to ensure the success of the process. Their Custody client service and OTC teams will collaborate to create one point of contact as the client trade. This will enable clients who are initiating positions to buy over-the-counter and settle assets into Custody directly.
The introduction of cold storage trades for Coinbase clients will have many advantages. Apart from simplifying the trading process, they have other things to gain. Initially, users move their funds online to enable them trade, but the integration has eliminated such hassles. Another advantage of this development is that clients will enjoy more security as they trade online.
Before Coinbase integrated this new feature, another exchange launched the same product in January. The Blockchain security company BitGo and Genesis Trading jointly equipped clients with the capability of trading with assets in custody. Although these companies first took up the initiative, Coinbase supporters believe that they will soon surpass them.
Let’s not forget that Coinbase clients are big shots in the crypto community. The company boasts of many large companies and institutional investors amongst others in their client base. The users of Coinbase Pro are very enthusiastic about the integration. It has presented a way to protect their funds. Instead of moving them to outside OTC desks, they can trade from cold storage. As a result, avoiding the transfer risks facing them during such transfers is now possible. This move by Coinbase will help to garner more approval from their clients.
The company has stated that its OTC desk is for the agency only. According to them, all counterparts need to clear their Anti-money Laundering rules (AML) and know-your-customer (KYC) policies. Although the company puts these mechanisms that thoroughly check trading activities, it is still not enough. The exchange still insists that they will preserve anonymity for the counterparties and still guarantee settlements.
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