Marex and Coinbase have partnered, via two of their subsidiaries, to bring to the institutional space new cryptocurrency derivatives products.
Marex Solutions, a division of Marex Group that specialises in customised derivative products, and Coinbase Prime, the crypto exchange’s custodian and liquidity hub, plan to broaden both parties institutional digital hedging and crypto investment capabilities.
The partnership will leverage Marex Solutions expertise in building derivative solutions and Coinbase Prime’s crypto custody, liquidity, and prime services. The agency-only model adopted by Coinbase Prime suits Marex Solutions’ Derivatives Engine, allowing for multi-venue liquidity and best execution, enabling attractive pricing and reliable secondary market liquidity.
Nilesh Jethwa, Chief Executive Officer at Marex Solutions, said: “Both Marex Solutions and Coinbase are focused on empowering our collective institutional clients. We have deep expertise in hedging and investment solutions, while Coinbase is the clear market leader for accessing and storing crypto assets.
“Our partnership brings the best-in-class financial toolbox to digitally native players, while providing secure and easy access to crypto economics to traditional financial institutions. We’re building a two-way bridge between the traditional finance and digital worlds.”
Brett Tejpaul, Head of Institutional Sales, Trading, Custody, and Prime Services at Coinbase, added: “We are extremely excited to partner with Marex to bring our institutional clients a diverse set of products, enabling them to either manage their risk or build their investment portfolios in ways never possible.
“We are impressed with the amount of growth and scale that Marex Solutions have enjoyed since they were founded in 2017, and we look forward to this partnership delivering some compelling innovations to the market.”
Marex offers a range of products within a list of crypto-underlyings, either in a securitised or in an Over-the-Counter (OTC) format.
Coinbase Prime has launched a prime services offering to help institutional players like Marex Solutions to build investment grade products.
Harry Benchimol, Co-Head of Derivatives Engine, Marex Solutions, said: “Coinbase and Marex have complementary strengths. We both share the ambition of transforming the market, opening new, innovative, and helpful solutions in a fast-moving world. Our core competence of manufacturing customised derivatives with Coinbase’s expertise on cryptocurrencies will bring that new asset class to the next level.”
Guillaume Chatain, Head of EMEA Institutional Sales, Coinbase: “At Coinbase, our mission is to create an open financial system for the world. We believe that open protocols for money will create more innovation, economic freedom, and equality of opportunity in the world, just like the Internet did for publishing information.