Coinbase recently released a list of principles they aim to adhere to as an exchange platform. In a blog post named “Introducing our Institutional Core Principles”, Adam White, the Vice President and General Manager at Coinbase, spoke about the rules for propagating the platform’s visions.
This comes after a general uptick of interest by institutional investors and the building of accompanying infrastructure by Coinbase. They claim to have launched a collection of new cryptocurrency-focused products and services which are specifically targeted at institutional investors. They also wish to create an open financial system for the world, which they aim to do with the issuance of these principles. They stated:
“This set of fundamental beliefs will act as our North Star as we design, develop, and operate our products.”
The first of their principles is to operate a market which is fair and orderly, aiming to provide an active monitoring of a market to ensure its general health. Moreover, the platform also aims to offer protections to ensure that the market will be established and operated.
Coinbase aims to do this by operating a team focused on Market Operations. The team will “control and monitor market health” based on industry standards to ensure the same. Moreover, the platform also aims to emulate the standards of what they call a “tier-one global exchange” which seems to be their term foran industry leader in the space.
Moreover, the exchange promises to adhere to business practices that make sure that the global market is reliable and performs as expected. This also includes mechanisms to reestablish and halt liquidity, which seems to be worrying for the proponents of a decentralized future.
As their second principle, Coinbase granted institutional-grade security solutions, such as cybersecurity and higher operating standards. The platform stated that they will only operate institutional-grade tools and teams while handling customer data. Moreover, they also aim to comply with federal regulation or exceed it, along with participating in newer developments in the space.
Coinbase proclaimed themselves as an industry-leader in custody and cold-storage wallets. This comes after their announcement of a custody solution known as Coinbase Custody. The wallets will utilize storage vaults that are distributed, and insurance of the assets that have been stored.
The other principles exist to serve Coinbase’s purpose of ensuring transparent communication between market players and the platform itself. The third principle spoke about the need to enforce transparent rules in the market and about the governance of the space. This will be conducted by providing market players with a market rulebook tailored to cryptocurrencies.
Coinbase will provide participants with trading rules, which they state will be applied fairly to all market players. Moreover, they will also provide clear data on trading fees, market capabilities, and processes for trading halts and market closes. The platform also states that they will actively monitor the malicious and deceptive trading practices in the market.
For their fourth principle, they promise to provide fair access to all the players in the market. This will be done by making access methods public and documented and providing market data that will be consistent. Moreover, Coinbase aims to cooperate with other participants in the industry to provide a safe and reliable ecosystem for cryptocurrency enthusiasts.
Finally, Coinbase stated that they will publicly disclose all their practices for listing and general rules of the market. Their process reportedly considers factors such as the security of the technology, governance processes, demand in the market, along with other potential changes that will be announced.
The listing of new assets will be done in a consistent fashion, while maintaining strong relationships with providers of liquidity during the actual event. This is to ensure the presence of robust markets.