Coinbase announced that it has $ 20 billion in cryptocurrency assets under management, after adding $ 14 billion since April
The leading US cryptocurrency exchange Coinbase has announced that it now controls $ 20 billion worth of cryptocurrencies in its custody. It did so after the company raised $ 14 billion from institutional investors in the past few months.
Brett Tejpaul, Coinbase’s head of institutional reporting, revealed this latest development in a YouTube interview. Tejpaul announced that when the company joined Coinbase in April, it was only holding $ 6 billion in crypto assets. However, they have grown since then and now control over $ 20 billion in their depot.
Tejpaul is a seasoned finance manager who has spent 25 years in sales in commerce. He was with Barclays for nearly 17 years and spent another nine years with JPMorgan Chase. His wealth of experience in institutional funding has helped Coinbase boost its institutional investments.
Tejpaul told interviewer Eliisabetta Bartolini, partner at Heidrick & Struggles, that he joined Coinbase in April and is now responsible for expanding the institutional rollout of cryptocurrency in the areas of distribution, trading, custody and prime.
Coinbase founded Prime to serve institutional clients such as venture capitalists (VCs), hedge funds and asset managers. Tejpaul added that some of Coinbase’s growth was due to the Tagomi acquisition in May.
He stated that the Tagomi acquisition has radically changed the ability to serve institutional clients, especially those looking to use intelligent order routing and algorithmic execution. Thanks to the innovation, Coinbase’s institutional trading volume is 20 times what it was at the beginning of the year.
Tejpaul noted that Coinbase measures the fresh capital that comes into the crypto room and most of them are in Bitcoin. It’s not surprising when you consider that Bitcoin is still the largest cryptocurrency. The leading crypto has had an outstanding year so far and is up over 140% since the start of the year.
As Coinbase sees growth in institutional investment, the company is making changes that would allow them to better serve institutional clients. Tejpaul announced that Coinbase has switched its banking and auditing partners to JPMorgan and Deloitte respectively. He mentioned that JPMorgan and Deloitte took the time to review Coinbase’s practices to ensure they have the correct Know-Your-Customer (KYC) and Anti-Money Laundering (AML) policies on their platforms.
Tejpaul concluded by saying that he expects greater institutional influx into the cryptocurrency space in the coming years.