Leading US-based cryptocurrency exchange Coinbase has recently successfully completed an over-the-counter (OTC) cryptocurrency trading directly from its ‘cold storage’, in which the funds were offline.
According to a blog post, the San Francisco-based company revealed the trade occurred after “directly” integrating its Custody service with the OTC trading desk as Coinbase Pro, its main trading platform.
Per the post, the move was a “major unlock” for its clients, as it will now provide them with “easy and immediate liquidity on their offline funds.” Before Coinbase’s move, clients looking to withdraw assets from their cold storage- offline – solutions would have to wait before being able to execute a trade.
This, as withdrawing from the exchange itself could take between one and two days, and moving the funds through the blockchain could add to the waiting period. During that time, market conditions could change significantly.
Sam McIngvale, the CEO of Coinbase Custody Trust, was quoted by CoinDesk as saying that its clients can now “can buy OTC and settle assets directly into Custody,” and added the integration came as a response to client demand. He stated:
Being able to trade while their funds are held safely in cold storage is a feature that we’ve heard loud and clear that our customers want. Coinbase offers the world’s largest regulated pool of crypto liquidity. Being able to access this market quickly and safely unlocks tremendous benefits for our customers
As the news outlet pointed out various Coinbase competitors have already integrated their custody and OTC trading desks in an attempt to speed up trades to a standard that’s acceptable for institutional investors.
Coinbase has notably been releasing various new features in the last few months. After letting users easily backup their Coinbase Wallet private keys to the cloud, it started allowing the app to easily receive crypto from a Coinbase.com account.
More recently, the firm’s Coinbase Pro platform added Stellar Lumens (XLM), days before IBM’s Vice President of Blockchain and Digital Currencies is set to make an announcement on the firm’s cross-border payments solution. The company’s rapid development pace has, however, drawn critics, as crypto Twitter hasn’t been letting it catch a break.