“Institutions are increasingly interested in the crypto space but trading assets has remained a challenge because messaging is only available through proprietary API interfaces”.
Broadridge Financial Solutions has partnered with Coinbase in order to offer interoperability between Coinbase Prime and Broadridge Trading and Connectivity Solutions’ NYFIX order-routing network.
The move aims to bring liquidity and greater access to crypto trading by allowing all NYFIX clients to route order flow to Coinbase Prime via FIX, an industry standard protocol.
Buy-side traders will be able to source crypto liquidity from Coinbase and trade right from their OMS, with all the required compliance.
Institutional adoption is trending one way
Coinbase Prime provides an advanced trading platform, secure custody and prime services to manage crypto assets in one place. The service includes aggregated access to the majority of the market’s crypto liquidity via a market-leading smart order router and full prime brokerage capabilities to the buy-side.
Greg Tusar, Vice President of Institutional Products at Coinbase, commented: “Despite short-term cycles, momentum in institutional adoption is trending one way – toward more exploration and more interest. Utilizing the NYFIX order-routing network, this partnership puts deep, multi-venue crypto liquidity on more buy-side traders’ desks, lowering barriers for participation in this growing asset class.”
Ray Tierney, President of Broadridge Trading and Connectivity Solutions, said: “Institutions are increasingly interested in the crypto space but trading assets has remained a challenge because messaging is only available through proprietary API interfaces. Now, through Coinbase’s deep access to liquidity and NYFIX’s extensive market reach, we can integrate more than two thousand clients to bring crypto trading to the institutional market.”
The solution is now offered to US domestic clients and will roll out to additional regions as regulations allow.
BlackRock already tapped Coinbase Prime
Last month, BlackRock partnered with Coinbase Prime in order to provide institutional clients of Aladdin, BlackRock’s end-to-end investment management platform, with direct access to crypto.
The world’s largest asset manager will connect to Coinbase Prime, which will provide crypto trading, custody, prime brokerage, and reporting capabilities to Aladdin’s institutional client base, who are also clients of Coinbase.
This is a big move for the institutional adoption of crypto and is taking place as the ‘crypto winter’ smoothens following the tragic collapse of crypto lender Celsius and the DeFi protocol Terra/LUNA.
Coinbase Prime serves institutional clients including hedge funds, asset allocators, financial institutions, corporate treasuries and other institutions.
Coinbase Prime integrates advanced agency trading, custody, prime financing, staking and staking infrastructure, data, and reporting that supports the entire transaction lifecycle.