Coinbase is developing a service specifically targeting Australia’s self-managed pensions sector, according to John O’Loghlen, the exchange’s Asia-Pacific Managing Director. This move aligns with the growing trend of self-managed funds in Australia holding cryptocurrencies, which has surged since March 2019. The Australian Taxation Office reports that nearly A$1 billion (US$664 million) is currently allocated to crypto, a significant increase from A$197 million (US$131.5 million) in December 2019. However, investing in crypto has led to significant losses for many Australians, with thousands reportedly losing millions through self-managed pension funds as of March 2023.

O’Loghlen explained that self-managed super funds often make a single allocation and then largely forget about it. Coinbase aims to develop an offering that caters specifically to these clients, encouraging them to trade and stay with the platform. This new service is intended to provide a tailored experience for self-managed super funds.

The interest in crypto within the self-managed pensions sector has been fueled by recent momentum in the crypto industry, particularly following spot-ETF approvals in the U.S. There is also a strong likelihood that Australia may see similar approvals this year. O’Loghlen noted that this initiative is not intended to compete with ETF providers but rather to cater to a growing interest in self-managed portals for crypto investments.

Coinbase did not immediately respond to CoinDesk’s request for comment on this new service.

Overall, Coinbase’s new service aims to capitalize on the increasing popularity of crypto investments among Australia’s self-managed pension funds, providing a dedicated platform for these investors. The recent developments in crypto regulations and market trends suggest a promising outlook for this initiative.