Coinbase, one of the most popular cryptocurrency exchange platforms has been cooking up a lot of initiatives. Just last week, Coinbase Inc. has shared its intention to explore the listing of five new cryptocurrencies to include these in the platform - Cardano, Basic Attention Token, Stellar, Zcash and 0x.
As of now, there is no guarantee that the tokens will be listed. However, if this pushes through, Coinbase will successfully increase its portfolio to offer a total of 9 coins. One possible reason for the uncertainty in listing these is the country restrictions on certain coins.
Prior to this, the company made strategic acquisitions when it purchased Keystone Capital Corp., Digital Wealth LLC, and Venovate Marketplace Inc. These acquisitions were made so Coinbase can finally operate as a regulated venue for trading digital assets or a legal ‘cryptocurrency hub’ – the first in the world of its kind for that matter.
With this, Coinbase successfully positions itself as a broker-dealer, a provider for an alternative trading system, and a registered investment adviser all in one.
All this comes in a time that the company is facing heavy criticism in various areas such as the Bitcoin Cash insider trading incident and the sudden surge in transaction fees. These latest developments show that Coinbase is on track or even exceeding its expected progress in development and growth.
New Opportunities For Users
Dealing with cryptocurrencies usually comes with heavy caveats – both because of its volatile nature in the market and how there are fraudulent activities surrounding them. Now that cryptocurrency trading with Coinbase is completely legal, it may eventually be trusted with billions of dollars just like other regulated trading platforms. This new status would allow Coinbase users to trade other forms of tokenized securities and go beyond just the cryptocurrencies currently offered on the platform.
The SEC detailed that the coins in the platform are securities and should comply with federal laws as much as the platforms that facilitate the trading.
Moving forward, Coinbase is looking to integrate its technology to new subsidiaries, according to a spokesperson. Although there was no timeline given, this means that employees will eventually have all the needed licenses, a more transparent reporting, and customer acquisition processes.
Although Coinbase has set the pace, it isn’t the only one to consider getting this status as dealer-broker that can list tokenized securities. Circle Internet Financial Ltd., one of its competitors, said that it intended to register itself as dealer-broker with the SEC. This way, it can also offer investors coins as securities and further expand its service offerings.