Coinbase (COIN) Sees TradFi Institutions Driving Crypto Derivatives Boom
Coinbase (COIN), the crypto exchange that bought the largest crypto options exchange, Deribit, for $2.9 billion earlier this year, expects a wave of traditional finance (TradFi) institutions to start using digital asset derivatives for investments or hedging, said Usman Naeem, global head of the Nasdaq-listed company’s derivative sales.
The institutions waking up to globally regulated crypto derivatives are typically asset managers, who have a fiduciary duty to either speculate or conduct strategies beyond simply providing liquidity, which is the realm of market makers, Naeem said in an interview with CoinDesk. They’re most likely to come from the U.S. and Europe and are a fundamentally different breed of firm.
“Looking back, the vast…
