Coinbase Inc., a leading cryptocurrency exchange in the United States, is reportedly preparing to list directly on the stock market. Sources indicate that Coinbase started making for an official listing and would need approval from SEC.
Scrutiny Facing Cryptocurrency
The news broke via a tweet by independent researcher Walter Bloomberg and a report published by Reuters confirmed the rumor. Should this come to pass, it will be the first time in history for a cryptocurrency exchange to offer its company’s public shares. Currently, it’s only crypto mining hardware manufacturers Canaan and Bitman that are clear regarding public share offering.
Any company that wishes to list on the United States’ stock market requires approval from the Securities and Exchange Commission (SEC). Furthermore, the New York State Department of Financial Services (NYDFS) would also possibly need to intervene due to the amount of scrutiny facing the cryptocurrency exchange business. Coinbase recently hired former US Magistrate Judge Paul Grewal as Chief Legal Officer to strengthen its legal team.
Seamless Powerful Trading Experience
Not too long ago, the cryptocurrency exchange acquired a leading cryptocurrency brokerage Tagomi. The company wanted to strengthen its proposition to attract advanced and the “most sophisticated crypto investors.” During the acquisition, the company stated:
“The addition of Tagomi will round out our product suite for the fast-growing institutional trading market. It will allow us to offer custody, professional trading features, and prime brokerage services on one platform, giving sophisticated investors the seamless, powerful trading experience they have come to expect in equities and FX markets.”
List New Cryptocurrencies
The company that was valued at $8 billion during its last funding round in 2018 offers more than exchange services. It also provides various institutional-grade services apart from a cryptocurrency exchange via Coinbase Pro and Coinbase Custody. Since then, the firm has grown profoundly and has gone on to list new cryptocurrencies besides providing custody to funds like Grayscale Trust Fund.
It’s not yet clear whether Coinbase will go the direction of an initial public offering to accompany public trading. The business of raising more capital is often associated with the listing. However, the existing shares could also become available to trading without additional funding. The acquisition of a new legal counsel could have been part of the preparation for an IPO.