Marex Solutions and Coinbase Prime to partner on crypto derivativesNovember 23, 2021
Marex Solutions, a division of Marex Group that specialises in customised derivative products, and Coinbase Prime, one of the world’s largest crypto custodians and liquidity hubs, have today announced a partnership that will broaden both parties institutional digital hedging and crypto investment capabilities.
This partnership combines Marex Solutions leading expertise in building derivative solutions and Coinbase Prime’s market leading crypto custody, liquidity and prime services. It will allow both firms to expand their respective crypto product offerings, with Marex Solutions and Coinbase Prime’s institutional clients gaining access to a broader universe of structured products based on crypto underlyings.
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.
“Both Marex Solutions and Coinbase are focused on empowering our collective institutional clients,” commented 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: “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.”
With institutional customers wanting access to more than just the underlying asset, Marex Solutions is today offering a broad range of products within a wide list of crypto-underlyings, either in a securitised or in an Over-the-Counter (OTC) format. It already has several innovations in the crypto market, including the first ever autocallable on a crypto currency and the first ever securitised cash and carry trade on bitcoin.
At the same time, Coinbase Prime has been working hard to establish a market leading prime services offering, and the launch of this offering to the market enables institutional players like Marex Solutions to build investment grade products. 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.” commented Harry Benchimol, Co-Head of Derivatives Engine, Marex Solutions
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.
This partnership with Marex Solutions enables us to deliver on that innovation potential.”