Wed, May 22, 2024

Cryptocurrency Exchange Coinbase and International Clients

Visa and crypto industry, Coinbase

Cryptocurrency exchange operator Coinbase opened new custody operations in Dublin, in the capital city of Ireland. Coinbase decided to open the center to help non-U.S. institutional clients to store their assets.

On Wednesday, the exchange operator announced that it plans to create Coinbase Custody International. The purpose of this entity is to expand its institutional efforts further abroad. It already serves clients in Europe. The new unit will focus on the needs of European customers.

Europe is a strategic market for the cryptocurrency operator. The CEO of Coinbase Custody commented on this decision. According to Sam McIngvale Europe represents the biggest geographic segment of growth. Moreover, interest continues to rise and Coinbase Custody International would help to cover clients in Asia and other regions.

Currently, the company has more than $7 billion worth of assets under custody. Out of $7 billion, just under $1 billion belongs to European and international clients.

Coinbase is known for its retail investment platform. Nevertheless, Coinbase also sells professional trading and custody services to wealthy institutional investors.

Coinbase and cryptocurrenciesEuropean clients and Coinbase

It is harder to invest in cryptocurrencies for banks and hedge funds due to their volatility and legal challenges. Crypto regulation is one of the most debated topics among private and governmental organizations.

Coinbase is regulated in New York as a chartered custodian with the ability to hold funds on behalf of clients. The CEO of Coinbase Custody stated that the company plans to apply for a license in Europe. One option is to gain authorization under the EU’s MIFID investment services laws.

In spite of the problems, investors and companies are willing to invest in cryptocurrencies. In 2019, investment firm Fidelity launched a new program focused on custody and executing orders for cryptocurrencies.

Facebook’s project Libra is another example. This project struggled to gain approval from U.S. lawmakers. However, such projects are important as they help to raise awareness about cryptocurrencies.

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