Coinbase is primarily utilized by hedge funds, asset managers, corporates, and large traders. The firms provide multiple currencies while trading crypto across the country. Currently, Coinbase reported an alliance with Standard Chartered on May 26 to provide a fiat currency settlement system backing six (6) currencies for businesses investors through Coinbase Prime and Coinbase Exchange, such as Australian Dollar (AUD), Singapore Dollar (SGD), Canadian Dollar (CAD), Swiss France (CHF), Euro (EUR), and British Pound (GBP).
The incorporation of these six currencies allows a new multi-currency system, specifically improving support for AUD, SGD, CAD, and CHF. Meanwhile, EUR and GBP are backed through settlement established in partnership with a globally important bank. However, Prime Trading within the EU is currently unable to access this feature.
The alliance between Coinbase and Standard Chartered could impact major institutional money flows. According to CoinGape report, Coinbase prime recently holds custody over 12% of the global crypto market cap. The system supports tradeable assets and assets for financing and cross-margining.
At present, businesses investors utilized hybrid strategies across spot market and financing through derivatives, showing a demand for capital efficiency and the ability to introduce capital in regional currencies without undergoing a base settlement currency.
Coinbase underscored that its alliance with Standard Chartered is projected to lessen FX conversion costs and enhance capital efficiency. The alliance also highlights the enablement of seamless transactions across global trading operations for institutional users.
In addition, Coinbase emphasized that the alliance represents a faster way to integrate digital assets with traditional banking systems, highlighting that such a system is not limited by banking hours or geography. As Coinbase noted, ““The direction is clear: a system where capital is not constrained by geography, banking hours, or legacy infrastructure.”
Earlier this year, Coinbase holds over $350 billion in terms of assets under custody approximately more than 80% of U.S. spot Bitcoin and Ether ETF assets.
Furthermore, the company also reported that they will increase its stablecoin base capabilities and develop a network allowing seamless transfers between fiat currencies and local stablecoins.
According to MEXC report, Rain has integrated Mastercard into its stablecoins-backed system to link on-chain settlement with existing payment systems. Similarly, Circle and Ripple support Tazapay’s $36 million increase as more firms develop regulated fiat and stablecoin payment system for banks, financial technology, and global institutions. This structure shows a wide trend in the market, as firms such as Stripe and Coinbase are expanding its stablecoins into their network.
Overall, the strategy of Coinbase and Standard Chartered shows a major trend in crypto space. It expands its exchanges by collaborating with traditional banks to reinforce the institutional system.
