Marex, Coinbase, Partner for Crypto Derivatives
Posted by Colin Lambert. Last updated: November 28, 2021
Marex Solutions, a division of Marex Group that specialises in customised derivative products, and Coinbase Prime, have unveriled a partnership that they say will broaden both parties institutional digital hedging and crypto investment capabilities and allow both firms to expand their respective crypto product offerings.
The agency-only model adopted by Coinbase Prime suits Marex Solutions’ Derivatives Engine, allowing for multi-venue liquidity and best execution, enabling pricing and secondary market liquidity. “Both Marex Solutions and Coinbase are focused on empowering our collective institutional clients,” says Nilesh Jethwa, Marex Solutions CEO. “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, Coinbase, adds, “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 says with institutional customers wanting access to more than just the underlying asset, it is offering a broad range of products within a wide list of crypto-underlyings, either in a securitised or in an OTC format. It already has several innovations in the crypto market, it says, including the first ever auto-callable on a crypto currency and the first ever securitised cash and carry trade on bitcoin.
At the same time, Coinbase Prime has been establishing a prime services offering, and the launch of this to the market enables players like Marex Solutions to build investment grade products, the companies add, observing, this combined set of expertise now brings crypto derivatives in line with more established asset classes.
“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.” says Harry Benchimol, co-head of derivatives engine, Marex Solutions.