Coinbase Head of Institutional Hedging Brett Tejpaul indicated that institutional investors’ interest in cryptocurrencies has tripled. Certainly since joining Coinbase in April 2020.
Specifically, in an interview published Friday with Heidrick & Struggles’ Elisabetta Bartolini via YouTube channel, Tejpaul detailed some of the main growth areas at Coinbase.
In fact, Tejpaul came to Coinbase after 25 years of selling and trading in traditional financial markets. With almost 17 years at Barclays and 9 years at JPMorgan.
In a way, he explained that he joined Coinbase six months ago. And now he is responsible for growing the institutional adoption of cryptocurrency, for sale, trade, custody and Prime.
“We have had an explosion of activity. Since I joined in April, our institutional assets in custody were $ 6 billion. Today we are at more than $ 20 billion ».
In short, Brett Tejpaul emphasizes that institutional interest in space multiplies week after week.
Furthermore, he added that they are currently measuring the fresh capital coming into cryptocurrencies that is primarily allocated to Bitcoin in billions. Therefore, they have had an explosion of incoming capital from institutional investors.
How is Tejpaul prepared?
Along the same lines, Tejpaul explained how Coinbase has been preparing for the avalanche of institutional money in its associations. Also, how to deal with government regulation.
“At the beginning of the summer we acquired an execution platform called Tagomi. Radically transforming our ability to serve institutional clients. “
At that time, Shan Aggarwal, Coinbase’s head of corporate development, said, “We are going to integrate the Tagomi platform into our product suite. It will form the foundation for the future of our institutional trade business.
Continuing on the topic, Brett Tejpaul also commented to Elisabetta Bartolini that adding JPMorgan Chase as its banking partner and Deloitte as its auditor has given Coinbase more compliance credibility.
As a curious fact, both firms went through a period of one to two years of due diligence. And so make sure they had the correct KYC (know your customer) and AML (anti-money laundering).
Likewise, Tejpaul highlighted recent bullish events in the crypto space. Starting with hedge fund manager Paul Tudor Jones, who said in May that he put around 2% of his wallet in Bitcoin.
Jones’s decision was important. Because it served as a business card for other traditional macro companies, which are thinking of Bitcoin as a store of value.
Likewise, he mentioned MicroStrategy, which invested $ 425 million in Bitcoins. And it made cryptocurrency its main Treasury reserve asset.
Similarly, Tejpaul claimed that it has seen direct results of PayPal jumping into the crypto space. And he indicated that when these highly prestigious entities enter the space publicly, he encourages other institutions to follow suit.
To conclude the interview, Brett Tejpaul said, “I have really unleashed a second wave of institutional adoption.”
I retire with this phrase from Benjamin Graham: “Successful investments consist of knowing how to manage risk, not avoiding it.”