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$20 billion regulated cryptocurrency: Coinbase sees a “capital explosion” by institutional investors

Coinbase revealed that it has “poured a lot of capital.”Its assets under custody It is currently US$20 billion, of which US$14 billion has accumulated since April. Coinbase highlighted a series of bullish events that “really triggered” a wave of institutional adoption.

Coinbase has $20 billion in custody

On Friday, Brett Tejpaul, the head of Coinbase’s institution, spoke about the institutional demand for Bitcoin in an interview with Heidrick & Struggles International.

Tejpaul has 25 years of sales and trading experience, including nearly 17 years at Barclays Bank and 9 years at JPMorgan Chase. He explained that he joined Coinbase six months ago and is now “responsible for promoting the adoption of cryptocurrencies in institutions in the areas of sales, trading, custody and Prime.” Prime is a service provided by Coinbase to institutional clients, including asset managers, hedging Funds and venture capital.

“This is an amazing moment for encryption…sometimes, time is everything,” Tejpaul said. He added: “Our activities have surged.”

I joined in April this year. At that time, our assets (assets under custody) were US$6 billion. Today, our assets are more than US$20 billion, which has more than tripled.

“Earlier in the summer, we acquired an execution platform called Tagomi, which brought us overnight and completely changed our ability to cater to institutional clients who want to use smart order routing and algorithmic execution. Therefore, According to statistics, our transaction volume is 20 times that of the beginning of the year.” Tejpaul continued.

He described: “We are now measuring the new funds entering the cryptocurrency, mainly Bitcoin allocated to billions of dollars,”

Week after week, we received a lot of inflows.

Tejpaul said that Coinbase has “upgraded” its banking and audit partners: JP Morgan Chase and Deloitte. “Both companies have gone through one to two years of due diligence to convince themselves that we have the correct KYC, AML, and the fact that we are posing and acting like banks, and choosing to accept supervision, and therefore we are Safe entrance.”

Then, he focused on the recent bull market events in the cryptocurrency field. First, the famous hedge fund manager Paul Tudor Jones (Paul Tudor Jones) said in May that he invested 2% of his portfolio in Bitcoin. currency. Jones said in October that he believes Bitcoin has a lot of room for growth.

Jones’ decision is “important because it serves as a calling card for other traditional macro companies that are considering Bitcoin as a store of value and Bitcoin as a potential trailing risk hedging object for the portfolio,” Tejpaul Added:

We have seen incredible institutional waves following Paul’s leadership.

He also mentioned Microstrategy, which was listed on the Nasdaq, which invested $425 million in Bitcoin and used cryptocurrency as its main treasury reserve asset. CEO Michael Saylor has become a Bitcoin bull market and personally invested $240 million in BTC.

Other well-known hedge fund managers who have made bullish statements about Bitcoin include Bill Miller and Stan Druckenmiller. Bill Miller said that Bitcoin will eventually own Bitcoin. , Bill Miller (Stan Druckenmiller) finally believes that Bitcoin will likely defeat gold.

Tejpaul further shared a typical day for him on the podcast. “By 9:30 in the morning, I called five independent institutional clients, and each client invested more than 100 million US dollars.” He explained that people who are on the sidelines “are now paying attention to large banks, large accounting firms, and large Hedge funds, large endowment funds, and now PayPal is entering this field,” the conclusion is:

This did trigger the second round of institutional adoption.

What do you think of institutional investors flocking to cryptocurrencies? Let us know in the comments section below.

Picture Credits: Shutterstock, Pixabay, Wiki Commons

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