Coinbase Assures Institutional Investors That It’s Got ‘Core Principles’

On 20 August 2018, roughly three months after Coinbase announced its suite of institutional products/services, its Vice President & General Manager, Adam White, laid down the set of five core principles that will be guiding the institutional business in a post published on Coinbase's Medium blog.

White explained why these principles were so important:

"Today, we’re sharing a set of core principles that will guide our institutional business. This set of fundamental beliefs will act as our North Star as we design, develop, and operate our products. Ultimately, we intend for these core principles to drive us toward our goal of operating the most trusted venue for storing, trading, and interacting with the world of cryptocurrency."

The five principles are:

  • "Operate a fair and orderly market"
  • "Protect our customers with institutional-grade infrastructure and processes"
  • "Enforce transparent market rules and governance"
  • "Provide fair access to all market participants"
  • "Publicly disclose listing practices and market rules"

The timing of the publication of these principles is quite interesting because it coincides with the day on which the Virtual Commodity Association (VCA), as covered by CryptoGlobe, announced that it has formed a working group (with Gemini, Bittrex, Bitstamp, and bitFlyer as the first four members), which, according to the VCA's press release, "will work towards the goal of establishing an industry-sponsored, self-regulatory organization (SRO) to oversee virtual commodity marketplaces."

In view of the concerns that the U.S. Securities and Exchange Commission (SEC) has expressed over the past several months regarding potential manipulation in the Bitcoin markets, it makes sense for Coinbase to reaffirm its belief in these principles to its existing institutional investors and to reassure potential new institutional investors that Coinbase is a safe place for them to trade crypto. Of course, once Coinbase becomes an SEC-regulated marketplace and/or custodian, that will make Coinbase, which already has an excellent reputation, an even more attractive destination for the billions of dollars of institutional money currently waiting at the sidelines.


Featured Image Courtesy of Coinbase

Crypto Exchange Kraken Working to Add Lightning Network Support Later This Year

Popular cryptocurrency exchange Kraken is working on adding support for Bitcoin’s Lightning Network later this year, according to the firm’s Bitcoin strategist Pierre Rochard.

Responding to a user on Twitter asking the firm for a clear timeline on its plans to add support for the layer-two scaling solution, Rochard confidently responded it’s working on adding it later this year.

Rochard later on retweet a user’s question on what the milestone would be for the Lightning network to be considered “ready,” which implies Kraken – and potentially other cryptoassets trading platforms – have been holding off adding support until the network becomes more stable.

Bitcoin Lightning Network was launched in early 2018 and quickly started being adopted right after, By May 2019, a total of 1,039 BTC were locked on the scaling solution, but the number of bitcoins users were moving off-chain started dropping soon after.

LN's growth over timeSource: DeFi Pulse

Several cryptocurrency exchanges have, however, already rolled out support for the Lightning Network. Bitcoin-to-gold exchange Vaultoro added support for it in May 2018, while South American crypto exchange Buda added them in October 2018.

While several other cryptoassets exchanges have since added support for the Lightning Network as well, the oldest cryptocurrency trading platform that added support was Bitfinex. Kraken would be one of the oldest exchanges supporting it as well.

The Lightning Network is supported by various Bitcoin community members as the cryptocurrency’s best scaling solution, as it takes payments off-chain. Another prominent scaling solution, now widely supported by Bitcoin Cash proponents, is to increase the block sizes on the network.

Featured image by Josep Castells on Unsplash