Two of the most promising exchanges in the crypto industry, Coinbase and Bakkt, are trying to lure institutional investors who are the future of crypto trading. Both the exchanges released promissory statements last week promoting their services to institutional investors.
In terms of market volume, Coinbase is America’s largest crypto exchange. Bakkt, on the other hand, emerged just a few weeks ago. However, it has already managed to attract the attention of investors owing to its owners. The exchange was formed by Intercontinental Exchange (ICE), backed by Fortress Investment Group and Boston Consulting Group (BCG).
Bakkt’s Plan Of Targeting Institutional Investors
In a recently released blog post, the Bakkt exchange explained its strategy to attract and retain institutional investors. It mentioned in the blog that first Bakkt will be launching an exchange framework to create a secure foundation on which crypto institutional investors can build.
According to Bakkt, big institutional investors will be drawn towards crypto trading in the market when they will see a secure, stable and established the framework. Bakkt aims to build an exchange by building strong mechanics such as effective price discovery, which institutional investors can trust.
The exchange has plans to attract institutional investors by offering them collateralized or a fully funded buying and selling process. This will help in creating increased market integrity for the exchange. Along with these strategies coupled with a regulated and secure physical settlement warehouse, the exchange will be able to draw institutional investors to the crypto space.
Coinbase’s Plans Of Targeting Institutional Investors
In order to attract institutional investors, the Coinbase exchange has outlined five guiding principles. The objective behind these five principles is to create an environment of secure and fair cryptocurrency trading for the investors, as per the Bitcoin Exchange Guide report.
Coinbase intends to ensure fairness in crypto trading for its investors by creating a Market Operations team. This team will be actively monitoring markets and carrying out the same surveillance practices as carried out in the largest global exchanges. The Coinbase platform will also monitor crypto exchanges to track any kind of suspicious trading behavior.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]