Coinbase Global tested crypto trading through $100M transaction - report

Coinbase Global (NASDAQ:COIN), America's largest cryptocurrency exchange by trading volume, wrapped up a $100M transaction earlier in 2022 to test its client-driven trading efforts, The Wall Street Journal reported Thursday, citing people familiar with the matter. In an effort to develop new business amid a lingering market downturn, Coinbase (COIN), which has seen its stock price plunge 73% year-to-date, welcomed at least four Wall Street traders and launched the so-called Coinbase Risk Solutions group to speculate on crypto using its own money, the WSJ noted. The exchange, in response to the report, emphasized that COIN does not conduct proprietary trading in which a firm uses its own cash to trade assets. Still, "Coinbase does, from time to time, purchase cryptocurrency as principal, including for our corporate treasury and operational purposes," it said in a blog post. "We do not view this as proprietary trading because its purpose is not for Coinbase to benefit from short-term increases in value of the cryptocurrency being traded."The goal of Coinbase's (COIN) Risk Solutions group is to provide institutional investors exposure to cryptos, and to "expand institutional participation in web3 beyond HODLing," it added. In July, former Coinbase employee charged with insider trading of crypto assets.