Brett Tejpaul, Coinbase’s Head of Institutional Coverage, revealed an explosion of capital from institutional investors.
Coinbase’s Head of Institutional Coverage, Brett Tejpaul, indicated that institutional investors‘ interest in cryptomonies has tripled. Indeed, since he joined Coinbase in April 2020.
Specifically, in an interview published on Friday with Elisabetta Bartolini of Heidrick & Struggles via the YouTube channel, Tejpaul detailed some of the main areas of growth in Coinbase.
In fact, Tejpaul came to Coinbase after 25 years in sales and trading in the traditional financial markets. He spent nearly 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 cryptomoney, in sales, trading, custody and prime.
„We’ve had an explosion of activity. Since I joined in April, our institutional assets under custody were $6 billion. Today we are at over $20 billion“.
In short, Brett Tejpaul emphasises that institutional interest in the space is multiplying week by week.
In addition, he added that they are currently measuring the fresh capital coming into the crypto-currencies that are allocated mainly to Bitcoin in billions. Therefore, they have had an explosion of incoming capital from institutional investors.
How is Tejpaul being prepared?
In the same vein, Tejpaul explained how Coinbase has been preparing for the flood of institutional money into their partnerships. Also, how to deal with government regulation.
„In early summer we acquired an implementation platform called Tagomi. It radically transformed our ability to serve institutional clients“.
By this time, Shan Aggarwal, Coinbase’s Head of Corporate Development, said: „We will be integrating the Tagomi platform into our product suite. It will form the basis for the future of our institutional trading business.
Continuing the theme, 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.
Interestingly, both firms went through a one to two year period of due diligence. This was to ensure that they had the correct KYC (know your client) and AML (anti-money laundering).
Tejpaul also highlighted the recent bullish events in crypto space. Starting with hedge fund manager Paul Tudor Jones, who said in May that he placed about 2% of his wallet in Bitcoin.
„Jones‘ decision was important. Because it served as a business card for other traditional macro companies, who are thinking of Bitcoin as a store of value.
He also mentioned MicroStrategy, which invested $425 million in Bitcoin Machine. And he made cryptomoney his main reserve asset of the Treasury.
Similarly, Tejpaul said he has seen direct results from PayPal jumping into crypto space. And he indicated that when these prestigious entities enter the space publicly, he encourages other institutions to follow their example.
To conclude the interview Brett Tejpaul said, „I have really unleashed a second wave of institutional adoption.
I leave with this quote from Benjamin Graham: „Successful investments are about managing risk, not avoiding it“.