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Coinbase to open Chicago office and offer trading blocks to institutional clients

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The coinbase cryptocurrency industry giant is about to open an office in Chicago and to support block trading in order to attract more institutional clients to GDAX, its professional trading platform.

According to Business Insider, Coinbase will start offering trading blocks – allowing traders to place large orders outside of the stock market's normal order book – to grow its institutional client base and solve a key issue. no pain for this demographic group.

High-volume traders find it difficult to execute orders in conventional cryptocurrency markets, as large orders can cause significant price fluctuations in relatively low-trading markets.

For block trades, orders are distributed to market makers outside the continuously updated order books of the stock exchange and transactions are generally published with a time limit. These factors help mitigate the effect that large orders have on the price of a cryptocurrency currency.

The service will likely be offered by GDAX, which currently ranks as the ninth largest cryptocurrency exchange in the world, with a daily trading volume of about $ 315 million.

The New York-based exchange Gemini, which was co-founded by Cameron and Tyler Winklevoss, began offering blockages last month.

A variety of other companies offer OTC transactions for institutional buyers. The Goldman Sachs-backed Circle cryptocurrency trading desk has recently doubled the minimum size of $ 500,000 worth of bitcoin orders, citing significant demand from large-scale traders.

Previously, Coinbase announced the launch of a cryptoasset guard service that will be open to customers seeking to stock at least $ 10 million worth of assets.

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The publication also reports that the San Francisco-based exchange operator made the decision to open an office in Chicago because of the city's status as a haven for professional business ventures . The change in his institutional operations here could help him poach the best talents of these companies and develop relationships with traders that he hopes to attract to GDAX.

As CCN reported, Coinbase reportedly valued itself at $ 8 billion internally, an approximate increase of $ 6.4 billion from the official valuation it had received last August at the end of his round of series D.

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