The company launched four new products: Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group and Coinbase Prime.
Coinbase, which already custodies $9 billion in customer assets, said there are billions of dollars in institutional money that will be invested in digital currency.
"We think this can unlock $10 billion of institutional investor money sitting on the sideline," Adam White, Coinbase's vice president and general manager, told CNBC. "We're seeing a rapid increase in attention awareness and adoption in the cryptocurrency market."
Hirji said investors, like hedge funds, want exposure to the sector but are not interested in "picking name A or name B" cryptocurrency. Hedge funds and other institutional investors have contacted Coinbase expressing their desire to increase activity in the space, and that was a primary reason Coinbase launched an index fund in March.
The fund gives accredited U.S. investors exposure to all the digital currencies listed on Coinbase, but unlike a major equities index — like the S&P 500 or Dow Jones Industrial Average, which holds 30 stocks — the Coinbase Index Fund invested in a limited list of four cryptocurrency holdings. Out of 1,500 cryptocurrencies in existence, the platform only trades bitcoin, bitcoin cash, ethereum and litecoin.
Coinbase has not suffered a hack like some other global cryptocurrency exchanges, yet institutional investors are concerned about security. Lack of a trusted custodia to safeguard their crypto assets was the impetus to launch Coinbase Custody last November, Coinbase president and COO Hirji said.
"They tell us that the No. 1 thing preventing them from getting started is the existence of a digital asset custodian that they can trust to store client funds securely," the company wrote in a blog post.