2020 has been very favorable for crypto exchanges, with exchanges like Coinbase accomplishing one of their best performances in the market. Last year’s growth was no doubt a result of the impressive rally for Bitcoin and other cryptocurrencies.
Coinbase’s About page has an interesting update that shows how far the company has come since it was formed in 2012.
According to information available on the about page, Coinbase now has an impressive 43 million registered users and $90 billion in assets on the platform.
The update appeared yesterday, and it’s part of the company’s 2020 year in review. It’s also coming as the firm is planning to go public through a direct listing on Nasdaq.
8 million users added within six months
The user-base milestone includes both institutional and retail clients. The figure revealed mid last year was 35 million, which means the firm has added an impressive 8 million users within 6 months.
Coinbase is presently the largest and most popular US trading platform for those who want to trade on cryptocurrencies.
The massive growth is a result of a favorable market condition that has unleashed increased participation of institutional investors.
In November last year, the exchange revealed its custody service holds about $20 billion worth of crypto assets, and $14 billion were accumulated within six months.
Institutional clients hold the major share
The company admitted that it has grown massively this past year, and sees itself as the largest cryptocurrency exchange in the world.
However, it’s not clear how many of such clients are monthly active users, as Coinbase did not provide that information.
The asset surge of Coinbase is most likely driven by institutions like Ruffer Investment, Microstrategy, and other institutions that have used the prime brokerage service of the exchange to buy large amounts of Bitcoin in recent months.
As a result, over 50% of the $90 billion crypto assets are from assets under the control of Coinbase custody. The report also suggests that Coinbase has carried out single trade executions for up to $1 billion for some of the largest institutional clients in the world.