Coinbase is – on track – to trade securities, fresh coins coming soon – Business Insider
Coinbase CEO Brian Armstrong Anthony Harvey / Stringer
- Coinbase, the $1.6 billion bitcoin exchange, has purchased three companies te one swoop.
- The main thing that Coinbase gets from the overeenkomst: Licenses that let it register with the government to offerande its customers even more financial services.
- That will give Coinbase some extra voorkant when the SEC issues its long-awaited rules around regulating digital tokens and cryptocurrencies &mdash, rules that could come any day now.
- Those licenses could also help Coinbase add more cryptocurrencies to the exchange.
$1.6 billion bitcoin exchange Coinbase has turned to M&A to get the licenses needed to run a fully-regulated financial business.
Ter a blog postbode Wednesday, Coinbase voorzitter and chief operating officer Asiff Hirji announced the acquisition of Keystone Caudal Corp., Venovate Marketplace, Inc., and Digital Wealth LLC. Coinbase acquired all three entities through one overeenkomst with their parent company, Key Acquisition, LLC, according to a company spokesman.
Those three fintech companies came with credentials near and dear to Coinbase: a broker-dealer license, an alternative trading system license (ATS), and a registered investment advisor (RIA) license.
“If approved, thesis licenses will set Coinbase on a path to suggest future services that include crypto securities trading, margin and over-the-counter (OTC) trading, and fresh market gegevens products,” Hiriji said ter the postbode.
Coinbase, an industry-leading cryptocurrency exchange, has bot slow to add fresh coins, given that they may be considered a security by the Securities and Exchange Commission (SEC).
The SEC has yet to give formal guidance about which digital tokens it plans to regulate, however it has indicated that it will do so te the near future. Cryptocurrency exchanges, unlike similar companies ter the financial space, have so far bot unregulated te the United States.
Some of Coinbase’s competitors, like Binance, trade more than 200 different coins. But Coinbase presently trades only four of the thickest cryptocurrencies on the market: bitcoin, bitcoin specie, ethereum, and litecoin.
Te late May, Coinbase acquired a trading toneelpodium called Paradex which lets users trade “hundreds of coins.”
“The stir not only reinforces Coinbase’s commitment to investing ter decentralized infrastructure and participating ter the nascent world of wallet-to-wallet trading, but also our concentrate on the international crypto trader,” Coinbase CEO Brian Armstrong said at the time.
It’s unclear when extra coins will be added to the Coinbase toneel.