Coinbase responds to The Wall Street Journal: does not engage in proprietary trading, purchases cryptocurrency for company operations and other purposes

Chain Catcher news, in response to a report by The Wall Street Journal, Coinbase stated that it does not engage in proprietary trading or act as a market maker. The Institutional Prime platform operates on an agency trading model, acting solely on behalf of clients. Public purchases of cryptocurrency are only for corporate funds and operational purposes. Coinbase does not consider this proprietary trading, as its purpose "is not to benefit Coinbase from the short-term value appreciation of the cryptocurrencies being traded."

Chain Catcher previously reported that The Wall Street Journal cited sources stating that Coinbase hired at least four senior Wall Street traders last year to diversify its revenue and formed a team, part of whose profits are generated through the company's cash trading and staking. This activity was described by company personnel as "proprietary" trading. (Source link)