Institutional investments in cryptocurrency are helping to grow the industry,
Coinbase Vice President and General Manager Adam White
told CNBC.
"What’s so unique about cryptocurrencies, and in many ways this
asset class, [is that it] was driven by retail investors — not
institutions," White said on "Fast Money" Monday.
So it was surprising that his firm, a San Francisco-based digital currency exchange, has had
"unprecedented" interest from institutional investors throughout
2017, he said.
The "institutional conversations have become more and more
profound," White said. In response, his firm has opened a New
York office and launched new products and services.
Last Friday, Coinbase, which is also the largest cryptocurrency
exchange in the U.S., announced it was considering adding five coins to its
platform, including cardano, basic attention token, stellar
lumens, Zcash and 0x. All five assets moved higher after the
announcement.
"The idea of adding new assets is very simply: our customers
want it," White said.
But so far, none of the coins have been approved, and it's not
yet been determined if they are securities. The company said in a
blog post on Friday that some of
the assets may have limited functions, and may only be available in
some countries.
The firm has previously been cautious about the addition of new
tokens despite user demand, as the cryptocurrency universe endured
increased regulatory scrutiny. Up until now, Coinbase has only
listed four coins on its platform.
"We have a long-term vision for the space," White said. "And we
are focused on building the exchange, the wallet, the custodian,
that allows capital to move into the space."