Broadridge, the institutional financial technology provider, has partnered withĀ CoinbaseĀ to make it easier for buy-side institutions to access cryptocurrencies. The deal enables interoperability between Coinbase Prime and Broadridgeās NYFIX order routing network.
NYFIX uses the FIX protocol, which is industry standard in TradFi but not in the cryptocurrency sector, which tends to use fintech APIs for connectivity. Initially, the NYFIX Coinbase integration is only available to US-based institutions.
Coinbase Prime doesnāt purely provide access to the cryptocurrency exchange but enables broader liquidity by routing orders to other crypto market participants, with Coinbase acting as the Prime broker. Additionally, it includes custody services which we believe is part of Coinbase Custody Trust Company, a trust company regulated by the New York Department of Financial Services.
āInstitutions are increasingly interested in the crypto space but trading assets has remained a challenge because messaging is only available through proprietary API interfaces,ā said Ray Tierney, President of Broadridge Trading and Connectivity Solutions. āNow, through Coinbaseās deep access to liquidity and NYFIXās extensive market reach, we can integrate more than two thousand clients to bring crypto trading to the institutional market.ā
Last month Coinbase announced that BlackRock had integrated with its platform.
For its part,Ā BroadridgeĀ has been active in blockchain for years. It runs a conventional system that services the $4.5 trillion US Treasury repo market, connecting 20 of the 24 primary dealers. Last June, it launched itsĀ distributed ledger repo (DLR) platformĀ that uses tokenization to enable atomic settlement and intraday transactions. It processed $31 billion in transactions during the first week, with participants including Natixis,Ā Societe GeneraleĀ andĀ UBS.
Additionally, Broadridge acquired a blockchain-based platform for private equity fund management fromĀ Northern TrustĀ and developed it further as part of its Private Market Hub.