Coinbas Institutional Core Principles
In a blog post, written by the Vice President and General Manager at Coinbase, Adam White, the famous cryptocurrency exchange introduced the institutional core principles that the company shares. The blog post explains that the firm wants to create an open financial system for the whole world and in order to do so they are launching an important number of products and services specifically designed for institutional investors.
At the same time, they have decided to share a set of core principles that will be guiding their institutional business. As Mr. White explains, these principles will work as the North Star for designing new products and services at Coinbase.
First Principle – Operate a Fair and Orderly Market
The main intention is to provide protections and active monitoring of market activity in order to ensure a healthy market.
So as to achieve that goal, Coinbase will take different actions such as operate a Market Operations team that will have the best practices to control and monitor market health, or administer a Market Surveillance function that has the same standards as important global exchanges.
Another action that the company will take is related to adhere to business practices and procedures that are key to ensure reliability, performance and durability of the global market. Finally, they will be actively monitoring suspicious trading behaviours developing best-in-class market surveillance, compliance and fraud detection practices.
Second Principle – Protect Customers with Better Infrastructure and Processes
The second principle aims to protect customers with institutional-grade infrastructure and processes. Coinbase will be operating a wide range of institutional grade tools and teams that ensure the safe storage of customer data and information.
Additionally, it will be complying with state and federal regulations, and it will be analysing and participating in new licensing and compliance activities.
But there are two other actions that will be taken into account, such as protect the assets of its clients using leading cold-storage and custody technics and maintain institutional-grade Markets platform with deterministic connectivity.
Third Principle – Enforce Transparent Market Rules and Governance
Participants will have access to current market rules. That includes a market rulebook that has been specifically developed for the structure and dynamics of crypto assets.
To do that, Coinbase will be providing public trading rules and policies that are applied to all the participants in the market and publish transparent trading fees and incentive programs.
At the same time, it will be clearly communicating market capabilities such as order minimums/maximums, execution options, trading volumes and more.
Other actions will be taken in order for all the participants to have transparent market rules. The exchange will be prohibiting and monitoring malicious trading practices, make audits with independent third-party companies, and follow a documented process for trading halts and the opening and closing of markets.
Fourth Principle – Fair Access To Market Participants
This is another important thing that Coinbase will take into account. All the participants will have the same rule set applied to them. So as to achieve that, all market access methods will be documented and publicly available, distributed market data will be fair and consistent, and capabilities and data available will have different options for customers to select their own needs.
Additionally, it will be cooperating with other important industry participants to provide customers a safe and reliable ecosystem.
Fifth Principle – Disclose in a Public Way Listing Practices and Market Rules
Coinbase wants to add new assets and instruments in a clear and transparent way. There will be a strict and transparent listing process that will be considering different factors including: sophistication and security of technology, governance process, market demand, and regulatory considerations.
In addition to it, new assets will be introduced in transparent and consistent way, something that will ensure equal information sharing in the customer base. Furthermore, it will maintain strong relationships with liquidity providers to provide strong markets.
If you want to learn more about Coinbase’s Principles, you can do it here.