Disclaimer: We may earn a commission if you make any purchase by clicking our links. Please see our detailed guide here.

Follow us on:

Google News

Coinbase Announces Custody Trading OTC Desk to Facilitate Cold Storage Trading

Bhaswati Sarkar
Bhaswati Sarkar
She likes to lose herself in music and daydreams quite often. Travelling excites her and photography is her passion- nature is her favorite subject. Writing is cathartic for her. A happy-go-lucky kind of person, she tries to remain calm and serene through daily life.

Join the Opinion Leaders Network

Join the Techgenyz Opinion Leaders Network today and become part of a vibrant community of change-makers. Together, we can create a brighter future by shaping opinions, driving conversations, and transforming ideas into reality.

Coinbase, the San Francisco-based digital currency exchange, has announced its plans to integrate its Coinbase Custody service with its newly launched over-the-counter (OTC) desk, now known as Coinbase Pro, in order to enable users to trade directly from cold storage without having to move funds online for business purposes.

This move comes as a response to the client demand for cold storage trading since the launch of the OTC cryptocurrency trading desk in 2018.

As per a blog post on The Coinbase Blog, Tim Plakas refers to this as easy and immediate liquidity on their offline funds.

Sam McIngvale, the CEO of Coinbase Custody, describes this move as “the defacto way to trade.

Moreover, the integrated OTC and Custody client service teams will collaborate and provide a sole point of contact throughout the exchange, so that clients initiating positions can buy OTC and settle assets directly into the Coinbase Custody.

Coinbase also clarified that its OTC desk is agency-exclusive and KYC and AML policies have to be approved of before its counterparts can carry out business. Along with a meticulous examination of these policies, the exchange will maintain anonymity for both counterparties while guaranteeing settlements.

BitGo, the blockchain security company, had launched their own custody trading product in 2019 itself, which can become a competitor worth taking note of. Even then, some users feel that owing to its acquaintance with larger institutional clients and company clients and its simplified trading process, Coinbase Custody might surpass BitGo and even contribute to this industry in a more significant way in the future.


Partner With Us

Digital advertising offers a way for your business to reach out and make much-needed connections with your audience in a meaningful way. Advertising on Techgenyz will help you build brand awareness, increase website traffic, generate qualified leads, and grow your business.

Power Your Business

Solutions you need to super charge your business and drive growth

More from this topic