Coinbase Responds to the Wall Street Journal: Does Not Operate Proprietary Trading Business, Buys Cryptocurrencies for Company Operations and Other Purposes

In response to the Wall Street Journal report, Coinbase responded that Coinbase does not operate a proprietary trading business or act as a market maker. The Institutional Prime platform is an agency transaction model, acting only on behalf of the client. From time to time, Coinbase will purchase cryptocurrencies as principal, including for corporate funding and operating purposes. Coinbase said it does not consider this to be proprietary trading because it is not intended for Coinbase to benefit from short-term growth in the value of the cryptocurrencies being traded. Additionally, as more institutions become interested in investing in cryptocurrencies, Coinbase will be rolling out new solutions to help. One way Coinbase intends to serve institutional clients is through a small new team called Coinbase Risk Solutions (CRS). CRS provides solutions for sophisticated institutional investors seeking exposure to the crypto asset class. The goal of the CRS is to expand institutional engagement with Web3 beyond HODLing.