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Coinbase Teams Up with Trading Technologies to Push Crypto Boundaries

coinbase

The cryptocurrency exchange, Coinbase, announced on Thursday a new partnership between its institutional platform – GDAX – and Trading Technologies (TT).  TT provides trading software for companies like Goldman Sachs and JP Morgan.  By adding TT tools, it will make it easier for traders to engage in spot market and futures trades at the same time.  This is significant, according to GDAX, because such tools are a foundation of sophisticated trading strategies, and could entice more major financial players to enter the crypto markets. In announcing the news, the companies said the new tools would increase the reach of GDAX’s platform, which could, in turn, expand the volume of crypto-trading across the world.

The company made the following statement:

With 19 of the top 20 futures commission merchants as distribution partners, TT users are some of the largest futures and commodity traders in the world. Its connectivity stretches to nearly 45 markets, including the futures markets of the CME Group, Deutsche Boerse, Intercontinental Exchange and Nasdaq. Through this partnership, TT users will be able to view market data, submit orders, and leverage a market-leading suite of charting and automated trading tools to trade cryptocurrencies on GDAX.

coinbase

Why is this important?  It is tailed to specifically meet the needs of institutional investors.  GDAX is recognized as one of the world’s most trusted cryptocurrency exchanges.  Coinbase is regulated by the New York Department of Financial Services BitLicense as well as more than 30 other state money transfer regimes.  This is important as a lot of countries have putting parameters around cryptocurrencies due to their lack of regulation.  With 19 of the top 20 futures commission merchants as distribution partners, TT users are some of the largest futures and commodity traders in the world. Its connectivity stretches to nearly 45 markets, including the futures markets of the CME Group, Deutsche Boerse, Intercontinental Exchange and Nasdaq.

Through this partnership, TT users will be able to view market data, submit orders, and leverage a market-leading suite of charting and automated trading tools to trade cryptocurrencies on GDAX. Michael Kraines, TT’s chief commercial officer, made the following statement: “This unparalleled strategic relationship means that for the first time ever, the institutional community can utilize our best-in-class professional trading tools to access both listed derivative and GDAX’s exceptional cash cryptocurrency offerings, side by side on one screen.”

coinbase

These are two trading companies essentially joining forces in order to make cryptocurrency investing more palatable for traditional financial services and firms.  Because that’s what’s scary right now, isn’t it?  There is an air of “unknown” around cryptocurrency that is giving it a bad rap.  As I said earlier, some countries are banning the currency, or at least putting parameters around being able to trade it.  Which puts it in the dark, so to speak.  This is a way for it to come to light, and for more people to get in the game of cryptocurrency trading.

I think this is a good idea, as it legitimizes the currency. And that’s what I’ve been saying all along – it’s not legitimate.  So people aren’t going to want to buy into it.  With this partnership, I think it will become more mainstream in a practical way.  And more people will start to buy/trade it more.

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