Coinbase’s CFO says crypto efforts for institutional investors could be a “phenomenon” in the future
A top executive at leading US-based crypto exchange platform Coinbase says efforts for blue-chip investors are likely to grow in popularity in the coming years.
In a new analyst call, Coinbase CFO Alesia Haas says the firm’s recent offering of crypto stakes for institutions will be branded further down the line rather than in the short term.
According to Haas, Coinbase has “introduced institutional clients” by offering them a delegated staking service similar to what is available to retail clients.
“Previously, the way institutions could access staking was via the Coinbase Cloud, and so they could have used our service to run their own node. But by offering it as the delegated staking service similar to what we have for retail customers, we just brought in institutional customers.”
Haas says this tactic will flourish when Coinbase starts offering large institutions liquid stakes for assets they’ve already massively accumulated, citing top altcoin Ethereum (ETH) as an example.
“What I want to share with you is its early days. We are looking at a lot of institutions holding Ethereum, as an example, as an active asset. But what I want to comment on there is that we have not yet rolled out a truly liquid staking option for ETH2 .”
According to Haas, institutions may not want their assets held indefinitely, but Coinbase hopes to solve that problem.
“So when you stake ETH2, you’re locking up your assets in Ethereum until the merger and then for a period after. For some institutions, this liquidity lock is not palatable to them. And while they may be interested in staking, they want to stake a liquid asset.
And that is something we are trying to solve for them. And I think that once we have liquid inputs available for the assets that the institutions accumulated in higher proportions, that’s when we will see the real material impact of institutional income. So I think it is further out, not a short-term phenomenon.”
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