Coinbase’s Study of Stellar, Cardano and BAT “Driven by Demand from Institutional Investors”

Coinbase’s Study of Stellar, Cardano and BAT “Driven by Demand from Institutional Investors”

The crypto-currency community has been awash with commentary over the weekend about Coinbase’s recent announcement in relation to its possible future integration of Stellar, Cardano and BAT token – amongst others – as base trading currencies on its platform. 

Whilst commentary has largely focused on the short-term positive effects of the news on the trading prices of the coins concerned, some have also been exploring the possible motivations behind the announcement itself. 

Coinbase Custodial

“With their new custodial services for institutional investors, it’s not just a coincidence that these five coins specifically are being considered,” claims Reddit contributor Crypt0W0rld01, referring to another announcement – this time dating from early May – from Coinbase. 

In that particular announcement, Coinbase outlined its new range of institutional services, Coinbase Custodial, which seeks “to offer a service that couples Coinbase’s cryptocurrency security excellence with third-party auditing and financial reporting validation that operates at the high standard of an SEC-regulated, custodial broker-dealer.”

In other words, one of Coinbase’s major business strategies is to focus now on offering institutional investors and cryptocurrency-based hedge funds the kind of streamlined and regulatory-compliant solutions that they are used to from mainstream financial services.

“Institutional investors wouldn’t tolerate slow roll,” another Reddit user added on the same discussion thread. Whilst there has been no comment forthcoming from Coinbase itself on the subject, for some analysts the link is plausible.

With its new focus on institutional services, there is a strong likelihood now that Coinbase will need to think about offering investors the ability to make quick exits – so there is a strong case here for arguing that the recent announcement in relation to Stellar, Cardano and BAT token are part of this larger picture,” states Ali Yazbek, ICO market analyst. “And if that’s the case, then Coinbase is likely trying to accommodate what it senses will be strong demand driven by institutional for these specific tokens.”